Private Equity Acquisitions of Bankrupt Firms in the United States and Germany

Inhaltsverzeichnis (Table of Contents)

• Introduction
• The framework for private equity acquisitions of bankrupt firms
• Acquisition options in the U.S. bankruptcy system
• Introduction to U.S. bankruptcy legislation
• Acquisition pursuant to a plan of reorganization
• Acquisition pursuant to section 363 BC
• Acquisition through purchase of claims
• Discussion of the acquisition options in the U.S. bankruptcy system
• General tendencies in U.S. bankruptcy procedures
• Speed
• Acquisition free and clear of liabilities
• Competitiveness of transaction process / Price of acquired assets
• Management approval
• Acquisition options in the German bankruptcy system
• Introduction to German bankruptcy legislation
• Acquisition pursuant to a transferring reorganization (Übertragende Sanierung)
• Acquisition pursuant to an insolvency plan
• Discussion of the acquisition options in the German bankruptcy system
• Speed
• Acquisition free and clear of liabilities
• Asset appreciation
• Other relevant factors
• Influence of creditors
• Debtor-/creditor-oriented bankruptcy systems
• Situation in the U.S.
• Situation in Germany
• Influence of labor laws
• Influence of a firm's stakeholders' attitude towards its bankruptcy
• The process and management of private equity acquisitions of bankrupt firms
• Particularities of the acquisition process in a bankruptcy environment
• Creation of a competitive bidding environment
• Time constraints
• Due Diligence
• Valuation
• Companies and situations of interest for distressed private equity investors
• Distressed private equity investors as providers of “smart money”
• Personal involvement
• Operational expertise
• Turnaround strategies of distressed private equity investors
• Overview of generic turnaround strategies
• Restructuring of leadership and organization / culture
• Cost reduction
• Repositioning strategies
• Capital structure management
• Competition between distressed private equity investors and strategic investors
• Theoretical background
• Influence of distressed private equity investors' activity on bankruptcy costs
• Anecdotal and empirical evidence on the efficiency of markets for bankrupt assets
• The market for private equity acquisitions of bankrupt firms
• Demand for distressed private equity
• Bankruptcies in the U.S.
• Bankruptcies in Germany
• Supply of distressed private equity
• Development of distressed private equity funds in recent years
• Characteristics of distressed private equity investments
• Number and size of investments
• Returns for investors

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This work aims to analyze the process and framework surrounding private equity acquisitions of bankrupt firms in the United States and Germany. It compares and contrasts the legal and practical aspects of these acquisitions in both countries. * Comparison of bankruptcy systems in the U.S. and Germany. * Acquisition strategies employed by private equity firms in distressed situations. * The role of distressed private equity investors as providers of "smart money." * Analysis of the market dynamics influencing these acquisitions. * Impact of legal and economic factors on acquisition success.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction sets the stage for the comparative analysis of private equity acquisitions of bankrupt firms in the US and Germany. Chapter 2 details the legal frameworks governing such acquisitions in both countries, outlining available options and their respective strengths and weaknesses. It focuses on the speed of processes, liability considerations, and the resulting price of acquired assets. Chapter 3 delves into the management process, highlighting the creation of competitive bidding, time constraints, due diligence, valuation, and the strategies employed by distressed private equity investors. Chapter 4 examines the market dynamics, analyzing the demand and supply of distressed private equity in both the US and Germany. It also includes data on bankruptcies and the characteristics of distressed private equity investments.

Schlüsselwörter (Keywords)

Private equity, distressed debt, bankruptcy, acquisitions, restructuring, turnaround, Germany, United States, legal framework, market dynamics, due diligence, valuation, competitive bidding, insolvency.