Insights

Have you ever considered what lies beneath the surface of a company’s financial performance and what is the real story behind the figures?

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.

With the rising impact of COVID-19 being seen worldwide, all industries will face significant disruption to their supply chain, workforce and cashflow. The right response will depend on the specific circumstances you and your business face. However, when experiencing significant stress or distress, we recommend you focus everything you do around the management of cash.

Our Corporate Finance team provides advice and support to companies that want to grow their businesses. We engage in cross-border transactions throughout the transaction cycle to seize opportunities and reduce the risks involved. Find out in our latest Grant Thornton International Business Report (IBR) what the typical risks in cross-border transactions are and how we can help you navigate through the transaction cycle.

As we explore in European M&A activity 2016, transaction volumes and values are down from the record high of 2015, but deal demand remains strong and fresh opportunities are emerging all the time. What’s driving activity in key markets and how can your business capitalise?