What is an accelerated merger and acquisition (AMA) process?
A transaction in a time critical situation. On the sell side, accelerated merger and acquisition activity can maximise value for stakeholders at a time of financial distress. A sale strategy is tailored to maximise value based on time available, usually driven by the parameters of existing borrowing facilities or creditor pressure. Typically, this is seven days to seven weeks.
Transactions usually involve:
- sale of debt;
- addition of new debt/equity;
- sale of shares;
- sale of business or assets; or
- disposal via an insolvency mechanism.
RSM’s restructuring and corporate finance experts manage the entire process, allowing our clients to focus on running their business.
When is an accelerated merger and acquisition (AMA) process suitable?
Challenging market conditions and financial distress can rapidly undermine a business’s performance. This often leads to loss of control for stakeholders, which can accelerate the deterioration of a business’s viability and value.
Typically, assignments are suitable for businesses with:
- existing or forecast liquidity shortfalls;
- downward trading performance trends;
- disputes with stakeholders;
- pressure from creditors;
- inability to raise additional finance from existing stakeholders;
- need for time critical turnaround capital;
- need to dispose of a loss-making business or division;
- loss of a major customer or supplier; or
- significant changes in key personnel or disaffected management.
How does the accelerated merger and acquisition (AMA) process work?
Transactions usually involve the sale of shares, business and assets or debt refinance or investments or sale via an insolvency mechanism. Our focus is on maximising value whichever route is followed.
Our sale strategy is tailored to maximise value based on time available, with typical timescales being seven days to seven weeks. Fast, controlled action is required before further value erosion occurs.
- liaise with creditors to maximise the client’s position;
- outline the available options, implement clear strategies and source additional funding;
- Explore a potential refinancing or investment strategy;
- implement short term cash flow strategies to ease pressure;
- advise on working capital management strategies; and
- provide interim management support.
Contact us to find out how we manage an accelerated M&A process for you.