distressed mergers and acquisitions

Distressed mergers and acquisitions involve the buying or merging of companies facing financial difficulties or operational challenges. These situations often arise when a company is struggling with debt, declining sales, or other issues that threaten its survival. Buyers may see an opportunity to acquire undervalued assets or turn around the struggling company. The process can be complex, as it requires careful evaluation of the distressed company's financial health, potential for recovery, and alignment with the buyer’s goals. Such transactions can be risky but may also lead to significant rewards if managed effectively.