Alexander Schmitt (Toronto)

Subscribe to all posts by Alexander Schmitt (Toronto)

Picking it up for a song: deal considerations when purchasing a distressed business

By Alexander Schmitt (Toronto) on May 30, 2017 Posted in Finance, M&A

Although a growing body of evidence—from job numbers to stock price figures—suggests that the Canadian economy is set for strong growth this year, there will always be companies (and industries) that get left behind for one reason or another. Where those companies that cannot meet their obligations have otherwise attractive assets, it presents an opportunity … Continue reading

New trend in distressed asset sales? “Pre-pack” sales under the CCAA

By Alexander Schmitt (Toronto) on August 30, 2016 Posted in M&A

Over the past year, we have seen the Companies’ Creditors Arrangement Act (the CCAA) used in a novel way to execute prearranged sale transactions of distressed companies’ assets, potentially indicating a new manner in which companies and their advisors are using the CCAA. In the typical asset sale under the CCAA, the applicant company obtains … Continue reading

New trend in distressed asset sales? “Pre-pack” sales under the CCAA

By Alexander Schmitt (Toronto) on March 15, 2016 Posted in Corporate finance

Delaware North? The (potential) rise of appraisal litigation in Canada

By Alexander Schmitt (Toronto) on October 1, 2015 Posted in Corporate finance

Under Delaware law and most Canadian corporate statutes, a shareholder who votes against a fundamental transaction—such as a going-private transaction or a sale of all or substantially all of the corporation’s assets—is entitled to object to the consideration offered and in turn require payment of the “fair value” of his, her or its shares as … Continue reading

Locking the box: an emerging tool to avoid post-closing negotiations

By Alexander Schmitt (Toronto) on January 29, 2015 Posted in Corporate finance

In Canada, private M&A transactions have long followed a familiar structure: the parties settle on a “cash free, debt free” price, which then must be adjusted post-closing to account for the target’s actual cash, debt and working capital (or other measures such as net assets) in an effort to reach the true “equity value” of … Continue reading