Distressed M&A and the role of m&a in corporate restructuring

Abstract

The global financial and economic crisis have led to a moderation in global M&A activity. The large M&A deals have disappeared and deal volume has fallen. Nonetheless, M&A remains a core part of business growth. Firms continue to look for acquisitions that allow them to capture a new customer base, technologies and products, access new markets and increase market share. While some years ago the M&A market was characterized by growing firms with a healthy track record, transactions involving distressed firms are increasing. Many investors, managers, advisors and academics are familiar with traditional mergers and acquisitions but little is known about distress-related M&A. However the surge in restructurings and failures has marked the M&A landscape and triggered a growing interest in these type of transactions. The practitioner-oriented and academic literature provide us with some insights but the risks and benefits of such transactions remain largely ambiguous. The goal of this dissertation is to increase our understanding of transactions involving troubled firms.