Company acquisitions and sales during the crisis – opportunities and risks

The coronavirus crisis has placed Swiss companies under enormous economic pressure. According to a survey carried out by the Zurich University of Applied Sciences (ZHAW), one in six SMEs currently view bankruptcy as a probable outcome.

The term “distressed M&A” is often thrown around in the context of acquisitions of companies with a high illiquidity or over-indebtedness risk, and this is something that many companies and investors view negatively. However, despite risks that are clearly present, a well-timed crisis acquisition or divestment can be advantageous for all parties involved.