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Strategies for Acquiring Distressed Businesses in Ireland: Opportunities and Challenges

The Irish market presents various opportunities for acquiring distressed businesses, with numerous companies facing difficulties. Between 2009 and 2011, the number of insolvencies has been noteworthy, indicating a potential for debt-for-equity deals. Key players includes NAMA and various banks that may support acquisitions. Assessing target businesses is crucial—good businesses with poor balance sheets or those with high legacy costs could be revitalized. This dynamic environment necessitates careful evaluation of market conditions and financing strategies to foster economic recovery in Ireland.

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Strategies for Acquiring Distressed Businesses in Ireland: Opportunities and Challenges

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  1. Acquiring Distressed Businesses in Ireland Jon Moulton

  2. Ireland has lots of distressed companies. Fact. • Irish Bank IPOs similar in frequency to distressed company acquisitions in Ireland. Also fact.

  3. Total Insolvencies: Comparison from 2009 to 2011 Source: Insolvency Journal.(http://www.insolvencyjournal.ie/industrial_stats/11-09-01/Total_Insolvencies_Comparison_from_2009_to_2011.aspx)

  4. Total Insolvencies by Industry: Comparison from 2009 to 2011 Source: Insolvency Journal. (http://www.insolvencyjournal.ie/industrial_stats.aspx?NewsCatID=7edd0572-1fa4-48df-bf06-9d64eedab7be)

  5. Potential Targets • Good businesses, bad balance sheets – debt for equity deals by banks • Silly legacy cost base – rents • insolvency or law change • Poor operating result, lots of debt (usually) - debt for equity - fresh equity - new management (mostly) (Our sort of deal) • Poor businesses, bad balance sheets - liquidate and liberate people and assets

  6. Owners • NAMA – National hotel, golf and property conglomerate • Irish Government backs • NIB, Ulster, KBCR, other foreign owned • International banks (Eircom) • Private and public “owners”

  7. Why Sort it Out • Cons – Losses and job losses • Pros – Get economy going again, restore reality to business • Redeploy economic resources to economic activity • Issues – What’s a fair price??? • Won’t solve bloated and happy public sector I’m afraid

  8. QUESTIONS

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