Distressed Acquisitions: Sometimes Boast An
Uncanny Resemblance To Three-Card Monte … You
Can Lose The Moment You Decide To
Enter The Game!

Abstract

These days, many first-time distressed investors will rush to scoop up incredible opportunities without apprehension. It must be easy, they think. We?ll just buy low, operate our way through the upturn, and sell high. Plus, multiples will be higher at exit, and we can refinance when credit eases. Everything will go according to plan. After all, control investments in troubled companies just need a new management team and some cost cutting, right? Caveat emptor … there are many tripwires and pitfalls in the distressed investing jungle. In this article, we share some tidbits gathered along our journey as both corporate performance experts and distressed private equity professionals.