Abstract

http://ssrn.com/abstract=2128535
 
 

References (54)



 


 



Acquiring Distressed and Bankrupt Concerns


Scott Moeller


City University London - Cass Business School - Faculty of Finance

Maria Carapeto


City University London - Cass Business School - Faculty of Finance

August 1, 2012

Faulkner, D., Teerikangas, S. & Joseph, R. (eds), The Handbook of Mergers and Acquisitions (Oxford University Press, 2012)

Abstract:     
This paper discusses acquisitions of distressed and bankrupt concerns. It starts with a description of the different types of targets (healthy, distressed, bankrupt) and provides insightful comparisons of deal and firm characteristics using the above classification, while recognizing the importance of economic cycles and how they may affect distressed and bankrupt acquisition levels. The paper then proceeds to compare both short-run and long-run performance of the companies involved in deals with the different types of targets and discusses special processes used such as bankruptcy reorganization and auctions, their relation to ‘fire sale’ discounts, and bid structure. The issue of post-acquisition divestitures is also analyzed. The paper ends with a timely discussion of the financial services industry that has recently been in distress and as such provides important insights of distressed merger activity.

Number of Pages in PDF File: 24

Keywords: distressed acquisitions, auctions, bankruptcy reorganization, fire-sales, merger performance, economic cycle, post-acquisition divestitures

JEL Classification: G33, G34

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Date posted: August 13, 2012  

Suggested Citation

Moeller, Scott and Carapeto, Maria, Acquiring Distressed and Bankrupt Concerns (August 1, 2012). Faulkner, D., Teerikangas, S. & Joseph, R. (eds), The Handbook of Mergers and Acquisitions (Oxford University Press, 2012). Available at SSRN: http://ssrn.com/abstract=2128535

Contact Information

Scott Moeller (Contact Author)
City University London - Cass Business School - Faculty of Finance ( email )
106 Bunhill Row
London, EC1Y 8TZ
Great Britain
+44 20 7040 8706 (Phone)
+44 20 7040 5168 (Fax)
HOME PAGE: http://www.cass.city.ac.uk/experts/S.Moeller
Maria Carapeto
City University London - Cass Business School - Faculty of Finance ( email )
106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 20 7040 8773 (Phone)
+44 20 7040 8881 (Fax)
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