Accelerated transactions may be initiated either by buyers who are able to use their cash resources to make approaches that would previously have been unwelcome, or by a company which is itself suffering the dramatic economic consequences of being unable to survive in its normal state or market.
As the name implies, accelerated mergers and acquisitions (M&A) are designed to be faster than a normal M&A transaction, but it may also bring much wider benefits.
Accelerated M&A should be deployed for transactions which are only effective and worth doing if they complete quickly: For example, to preserve the business, to retain the skilled workforce, client base and supply chain etc.
While the circumstances will be different in each case, many of these transactions might be deliverable without entering into an insolvency process. The benefits of the speed of execution, must balance the risks of doing a deal at a time when financial forecasts are bound to be much less reliable, and the due diligence and warranty cover is less than normal.
We have an Accelerated Deal Team ready to assist with these new deals. Our approach draws on the combined strengths and skillsets of Michelmores’ Banking, Restructuring & Insolvency, Corporate Finance, Commercial and Employment teams.
We would be delighted to speak to you and your accountants or corporate finance advisers with a view to exploring how you may benefit from accelerated M&A deals or advice in relation to more distressed situations.
Advising TechMet on its USD 55 million investments from the United States International Development Finance Corporation
Acting for Orchard Funding Group plc on its AIM IPO
Acting for Pay4Later (a consumer finance platform that connects merchants and their customers to banks and finance companies), in securing Series A funding from MissionOG
Acting on the £42m sale of Aero Stanrew
Acting for the Shareholders of MagicSeaweed on the sale to Surfstitch (listed in Australia)
Acting on the sale of Fianium to NKT Photonics (listed in Denmark)
Acting for Mobeus on its investment in Tushingham Sails (Red Paddle Co)
Acting for (UK listed) Haynes Publishing Group plc on its acquisition of Teon Media