Top Banner
THE OPPORTUNITIES & RISKS INSOLVENT ACQUISITION IN RETAIL INSOLVENT ACQUISITION IN RETAIL OF AN What are the top opportunities and risks for buyers looking to purchase insolvent retail companies? OPPORTUNITIES: RISKS: 3. Cherry-picking the businesses’ best assets without liabilities 4. Consolidating existing business in the sector 1. Cost effective market growth 6. Acquiring direct competitors 5. Developing multi- channel offerings 2. The diversification of brands #DLAPiperFashion 4. Time is of the essence A distressed acquisition will normally be completed in 1-2 weeks 5. Cash is king Administrators favour those with ready funds 2. Due diligence Understanding the business with limited time and information 1. Non-transferrable assets Ascertaining the value of assets such as IP and operating licenses, as these may be non-transferable 3. Warranty / indemnity protection Administrators are not expected to provide any warranties or indemnity protection
1

[INFOGRAPHIC] - Insolvent acquisition in retail

Jul 08, 2015

Download

Law

DLA Piper LLP

What are the top opportunities and risks for buyers looking to purchase insolvent retail companies.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: [INFOGRAPHIC] - Insolvent acquisition in retail

THE OPPORTUNITIES & RISKS

INSOLVENT ACQUISITION IN RETAILINSOLVENT ACQUISITION IN RETAIL

OF AN

What are the top opportunities and risks for buyers looking to purchaseinsolvent retail companies?

OPPORTUNITIES:

RISKS:

3. Cherry-picking the businesses’best assets without liabilities

4. Consolidating existingbusiness in the sector

1. Cost effectivemarket growth

6. Acquiring directcompetitors

5. Developing multi-channel offerings

2. The diversificationof brands

#DLAPiperFashion

4. Time is of the essenceA distressed acquisition willnormally be completed in1-2 weeks

5. Cash is king Administrators favour those with ready funds

2. Due diligence Understanding the business with limited time and information

1. Non-transferrable assets Ascertaining the value of assets such as IP and operating licenses, as these may be non-transferable

3. Warranty / indemnity protection Administrators are not expected to provide any warranties or indemnity protection