Did you know business bankruptcy may create an acquisition opportunity to grow and expand your successful San Diego or Southern California business? Bankruptcy actually makes many companies an acquisition target which could represent a valuable addition to your company.
Formerly bankrupt companies in San Diego and in other markets across the country have in many cases become desirable options for a merger or acquisition. The primary market sectors in these transactions are often focused in technology, media, supply, chemicals and even transportation. In a recent example, entrepreneurs in the transportation acquired the assets of an Alaskan regional air service through bankruptcy listings. Unfortunately for those who have filed, but fortunately for you there are plenty of potential candidates this year.
Corporate Bankruptcies are Substantially Increasing According to a Recent Forbes Article
Forbes published an article last month expressing concern at the increasing number of corporate bankruptcies in the United States. Many of the companies that are slotted to be sold are famous brand name companies. As they have come out of their bankruptcies more as robust concerns with growing markets, investment bankers feel that there will be strong demand for them.
In the media market, business bankruptcy may create an acquisition opportunity as the organization may still have large customer bases and hold large franchises, licensing or distribution agreements. Investment bankers think that merging some of these companies will be a likely outcome when rehabilitation is completed.
Tech companies also are emerging from bankruptcies now, as well as companies in the chemical sector. Hedge fund managers are confident that there are markets for these companies that have been restructured and repurposed.
How a Business Bankruptcy May Create an Acquisition Opportunity for Your Business
The San Diego mergers and acquisitions attorneys at the Watkins Firm have taken note that new owners of bankrupt companies get costs lower by closing unprofitable or non-strategic divisions, closing down plants and solving issues with unions or other workers. Since hedge funds and other financial institutions owning these companies want to keep their costs low, selling them quickly is a key tactic in their strategy. Thus, making them attractive to buyers is necessary to reach their goal of getting rid of them quickly.
Information published during initial declarations can provide valuable financial and operational insights which are otherwise unavailable in the public arena. There are substantial risks associated with the acquisition of business bankruptcy but the opportunities may well outweigh the risk.
This is why it is important to work with the business attorneys at the Watkins Firm. You can put your trust in a firm with more than 40 years of proven, successful experience in San Diego and Southern California mergers and acquisitions. Could a bankrupt corporate entity become an acquisition target that could help your bottom line? We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
