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