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.
For more information about distressed healthcare transactions and acquisitions, you can contact Mark Freelander at mfreedlander@mcguirewoods.com, Holly Buckley at hbuckley@mcguirewoods.com and Geoff Cockrell at gcockrell@mcguirewoods.com.
Episode highlights
- What are distressed transactions 02:10
- Out-of-court distressed transactions 04:59
- Type of buyer diligence done for distressed transactions 05:31
- Importance of regulators in distressed healthcare transactions 08:51
- Where to find distressed transaction targets 10:25
- Points of reference for potential buyers 12:14
- Issues in distressed healthcare transactions 14:31
We appreciate you joining us on this episode of Across the Table. To learn more about today's discussion or to contact us, please visit our website at mcguirewoods.com.
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This podcast was recorded and is being made available by McGuireWoods for informational purposes only. By accessing this podcast, you acknowledge that McGuireWoods makes no warranty, guarantee or representation as to the accuracy or sufficiency of the information featured in the podcast. The views, information or opinions expressed during this podcast series are solely those of the individuals involved and do not necessarily reflect those of McGuireWoods. This podcast should not be used as a substitute for competent legal advice from a licensed professional attorney in your state and should not be construed as an offer to make or consider any investment or course of action.
