Distressed M&A

Distressed M&A refers to mergers and acquisitions involving companies facing financial difficulties or bankruptcy. In these situations, a healthier company may buy a troubled firm at a lower price or combine to help it recover. This process can help the distressed company survive or exit insolvency, while the acquiring company might gain assets, market share, or strategic advantages. Essentially, distressed M&A is a strategic move during tough financial times to maximize value and facilitate restructuring or exit plans for struggling companies.