The takeover of a company in receivership, a real build-up opportunity in a context of declining M&A activity

This article examines how the current economic environment, characterised by rising debt costs and uncertainty about corporate margins due to inflation, has led to a slowdown in M&A activity following the post-Covid recovery period.
This slowdown is reflected in lower company valuations and a delay in the sale process as sellers wait for more favourable conditions. Traditional external growth options for financially stable companies have become limited, leading to exploration of other options.
At the same time, the number of insolvency proceedings, particularly for SMEs, has increased to levels comparable to those prior to the Covid 19 pandemic. This is creating new build-out opportunities for private equity funds and large companies that can create significant value. These opportunities are emerging at a time when new acquisition models are being developed, provided we understand the specifics of an investment process that differs from that of traditional M&A.
Read the interview with Edouard Dutheil, Restructuring Partner at Eight Advisory. To read the article, click here!