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Distressed M&A is basically a broad term describing any M&A involving a company in financial distress. Pre-pack sales would fall within distressed M&A.

A pre-pack sale is a specific restructuring tool that involves the appointed (or soon to be appointed) administrator negotiating the asset sale on behalf of the company. The key reason this is done is (i) speed of execution (to do the deal before formal insolvency happens and to avoid dealing with creditors); and (ii) to avoid any post-closing issues of the transaction being clawed back (e.g. because the transaction was at undervalue) under insolvency laws which may arise if the company itself was negotiating the transaction.

[QUOTE="ebitda, post: 62025, member: 2866"] Distressed M&A is basically a broad term describing any M&A involving a company in financial distress. Pre-pack sales would fall within distressed M&A. A pre-pack sale is a specific restructuring tool that involves the appointed (or soon to be appointed) administrator negotiating the asset sale on behalf of the company. The key reason this is done is (i) speed of execution (to do the deal before formal insolvency happens and to avoid dealing with creditors); and (ii) to avoid any post-closing issues of the transaction being clawed back (e.g. because the transaction was at undervalue) under insolvency laws which may arise if the company itself was negotiating the transaction. [/QUOTE]

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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