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Sunday, November 8, 
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Turning around distressed situations into the golden egg

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There's no better time than the present to acquire distressed assets, according to a panel that spoke during Buying Troubled Companies -- Turning Around Distressed Situations into the Golden Egg at The Deal's M&A Outlook 2009 conference on Tuesday afternoon.

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The panel was moderated by Andres J. Maxwell, managing director at Peter J. Solomon Co. Panelists included Scott Vollmer, CEO of Drum Capital Management; James J. Loughlin Jr., principal and managing director of Loughlin Meghi & Co.; and James D. Rosener, a partner at Pepper Hamilton LLP.

Vollmer said his company focuses on looking at distressed assets all year. When he looks at a potential buy, he said he looks at the collateral behind the company. "What's the value of the assets today?" he asks. And secondly, when he looks at a potential buy, he asks, "How do we get a company on track and back to growth-mode?"

As far as what sectors offer good opportunities, Vollmer said there's opportunity in at least 35 or 36 sectors that are trying to deleverage and sell business.

Loughlin echoed that liquidity is a huge problem that may get in the way for a distressed deal. "It's having a profound impact," he said.

Rosener said making a distressed deal is rarely a question of price but who is a buyer that can take it off a seller's hands. And in this market, it's likely the buyer with cash. - Gerald Magpily

See all M&A Outlook 2009 posts








Comments

From: Mark,

> Please list any or all of the sectors...thanks!


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