May 14, 2009: by Ryan K. Cochran, Bobby Guy, Katie Grainer Stenberg
(TMA International Headquarters) A Bankruptcy Code Section 363 sale is often the exit strategy of choice for distressed companies and their suitors. There are a number of reasons for this, one of the most important being the ability to get a Bankruptcy Court to issue an order blessing the sale and protecting the buyer from prickly liabilities. With Chapter 11 filings now predicted to hit historic highs and Wall Street’s remaining liquidity sources lost in a sea of confusion, the prevalence of 363 sales is likely to increase dramatically.
By Daniel Brettler, Senior Vice President, Life Science & Technology Practice Leader, Conner Strong
Our country is facing one of the worst financial crises in more than a generation. Life science and technology companies face many of the same struggles seen throughout the country. Inability to raise capital, increased operating costs, increased global competition and increased governmental and industry regulations are just a few.
April 8, 2011: By Daniel Brettler, Senior Vice President, Conner Strong
Often overlooked in the early planning of a human clinical trial, insurance requirements specific to foreign jurisdictions may have a significant impact on a company’s clinical program and a material impact on its bottom line. The clinical impact may include delay in enrollment as well as a decision not to enroll at all in a particular country from a cost/benefit perspective. Historically, the costs to secure insurance meeting local requirements were insignificant and therefore typically not strategic to the clinical trials planning process. An evolution has taken place in recent years outside of the United States whereby a more uniform approach to protecting patients in human clinical trials has prevailed and continues to gain momentum in just about every country today. This movement towards uniform protection has created a complexity of risk management and insurance issues for both insurance company and life science company alike. Read more
August 2008: The NIC Insider (National Investment Center for Seniors Housing and Care Industry)
A few months ago, I received a call from a friend asking for contacts at mezzanine funds to help capitalize his new venture. As I thought about his question, I realized that it has become very hard to name a pure “mezz” fund. The predominance of hedge funds and private equity groups in the last several years has resulted in a convergence of capital. While there are, of course, funds that tend to make significant investments at the mezzanine level, the abundance of liquidity in the capital markets leading up to 2007 has caused so many funds diversify their strategies that, in many cases, they have become indistinguishable. For example, ask yourself — what is the difference between a private equity fund and a hedge fund? In many cases, the answer is now unclear. Read More
July 13, 2010: Originally published in “The Distressed Debt Report” (July 13, 2010)
In the mergers and acquisitions market, the heady deals of just three years ago have disappeared. But in their place a frothy new market has emerged, and, as always happens in down economies, it is one in which true fortunes can be made. Bull market fortunes can turn out to be made of mere paper, but bear market fortunes are forever.
Investor money has been flooding into “distress” funds since at least 2008, and over the last six months, funds have begun deploying money much more actively. For the acquirer willing to navigate the straits of distressed investing, the worst of times can present the best of opportunities. Read More