Understanding how to buy and sell distressed businesses is different to normal sales transactions as the usual due diligence parameters do not apply.
When it comes to distressed companies, Olvera believes it is more “one man’s meat is another man’s poison” than “one man’s trash is another man’s treasure”.
Distressed acquisitions are by their very nature opportunistic purchases, and as such buyers often don’t have the time, or ignore the reasons for the business’s failure in the first place, and in doing so fail to realise the full benefits of the acquisition.
Too often however purchasers see only the financial distress as an opportunity to discount the purchase price of a ‘good asset’ rather than an acknowledgement that the good asset is no longer good.
At Olvera, we have proven track record in: