Keep or Sell? This question is likely to have become more explosive for many companies after a year marked by the coronavirus. In many corporations there are parts of the company that are under critical observation. “Often these are assets that have not been in focus for two or three years, that have been less invested in and that are in deficit,” says Daniel Herper, a lawyer specializing in restructuring at FPS. “During the crisis, the pressure to part with these areas increases.”
Separating a troubled area from a group structure is, however, a particular challenge: “Carve-outs are already complex, and so are transactions with turnaround or distressed cases. When carve-outs of troubled parts of the company, you have to overcome both challenges at the same time, “says Franz Woelfler, Managing Director at the financial investor Aurelius, who specializes in carve-outs and” underperforming assets “. The majority of transactions therefore run as a structured process under the direction of M&A advisors – and the same interested parties often cavort in the data rooms.
– .
