Company acquisition in crisis (insolvency)

There are some important points to consider when buying a company in crisis:

1. Time of purchase: The purchase of a company can take place before a possible insolvency application is filed or after insolvency proceedings have been opened.
2. Type of purchase - share deal or asset deal: In a share deal, the company's shares are acquired, but this does not eliminate the company's crisis1. In an asset deal, individual or all assets are acquired.
3. Risks and liability: Company acquisitions in a crisis harbour considerable pitfalls. It is important to consider the liability situation of the parties involved. For example, the acquirer may be liable for the liabilities of the former owner.
4. Due diligence: A careful examination of the company is essential in order to determine the financial situation, possible reasons for insolvency and the company's additional capital requirements.
5. Negotiations: The prospective buyer can conduct exclusive negotiations directly with the shareholders/managing director.

It is advisable to consult an expert in order to carefully weigh up the benefits and risks.