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

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

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

Auction in M&A: a zero-sum game?

By Troy Ungerman (Toronto) on September 2, 2015 Posted in Corporate finance

When deciding the method by which to sell a business, auctioning is an infrequent option among Canadian business owners. Yet, this seller-oriented process is designed to secure the best price and terms possible business owners. By creating competitive tension, the auction process compels bidders to put forward the highest price they would be willing to … Continue reading

The “bitter bidder”: late bids in insolvency sales processes

By Evan Cobb on May 28, 2015 Posted in Corporate finance

An insolvent entity will often have one or more businesses that, once separated from the insolvent organization or cleansed of their existing liabilities, is quite attractive acquisition targets. For this reason, insolvency of a commercial enterprise will often lead to a court-supervised process for the sale of attractive business lines in order to maximize recoveries … Continue reading