M&A in Germany: Distressed Companies and German Insolvency Laws

Category: GAI
Published: 2024-02-19
M&A in Germany: Distressed Companies and German Insolvency Laws

GlobalAutoIndustry.com’s latest Audio Interview “M&A in Germany: Distressed Companies and German Insolvency Laws” features Phil Hertzog. Mr. Hertzog is Managing Director of Germany-based Restructuring Alliance GmbH. He has a background of over 40 years as a manufacturing systems innovator and supplier to the automotive industry. Restructuring Alliance focuses on acquisition and reorganization of distressed German and European automotive suppliers and other firms in manufacturing through consulting with buyers, Joint Ventures and acquisition participation through their Limited Partnership Investment Fund. He maintains a legal residence in Germany and the USA.

In the 16-minute Audio Interview, Mr. Hertzog discusses these questions:

  • You are offering your clients The opportunity of significant value creation through investment in distressed companies in Germany. Value creation and distressed companies are not usually associated with one another, so please explain how you are achieving that.
  • You are acquiring a company that you can configure yourself to your liking and buy it at a significant lowered purchase price, but is that company still functioning then since it is in distress?
  • All the measures you describe appear to be very effective in stabilizing a company in a distressed situation, but how does that lead to a sale of the company?
  • You have established that distressed companies in Germany remain operationally functioning, their assets can be acquired at discounts and that their employees can be re-hired. How does all of that constitute the opportunity for value creation?
  • Can you provide an example?