It’s an unfortunate reality, but a number of companies are failing to adequately navigate today’s rapidly evolving climate. However, there is still hope for these distressed businesses as there will always be those on the look out to acquire or purchase them.
In this inaugural episode of Across the Table, hosts Holly Buckley and Geoff Cockrell speak with Mark Freelander, a partner from McGuireWoods’ Pittsburgh office. He dives deep into distressed transactions and acquisitions, explicitly addressing the process in the healthcare industry. Freelander explores how distressed asset transactions differ from traditional asset acquisitions.
He also stresses the importance of buyer due diligence before making a purchase, like understanding why the target is in financial distress and the underlying causes behind its predicament. Understanding these causes allows a buyer to formulate adequate solutions to address such issues. Buyers must also be cautious of red flags, such as a price that seems to good to be true.
Freelander recommends consulting with financial experts actively involved in this market as well as involving regulators early in the transaction. Experts and regulators can determine whether an acquisition is a good value and assist in reviewing healthcare provider contracts and other business agreements.
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