Merger & acquisition strategies and solutions for corporate distress.

STRATEGIC CONSULTING
FOR COMPANIES
IN TIMES OF
GREAT UPHEAVAL.

The Covid-19 pandemic triggered what observers consider the worst financial crisis of the last two centuries. Today, in order to face these challenges, companies in difficulty need a vision that skilfully integrates corporate law, M&A advising and management of corporate distress.
For this reason, we have created a high-profile strategic consulting service called FUTURO D'IMPRESA.

Strategies
for the right
choice

We provide direct support to the company, business owner and family, helping them to take the best direction moving forward, in a complex and constantly shifting landscape.
We have strategies, we identify solutions, we prepare plans built on solid foundations and the detailed and extensive expertise that has allowed us to successfully handle important operations in recent years that have become examples of excellence at the national level.

Our method comprises:

Initial meeting with business owner and their family

  1. We learn about the family and company history, the plans and problems of the business owne and the company dynamics.
  2. Together with existing company professionals (accountants, lawyers, etc.), we verify and analyse its positioning in terms of brand and products, accounting, financial, equity and debt position and its competitors and markets.
  3. We propose a strategy to adopt and illustrate it, providing precise targets with possible alternative solutions (Plan B) to handle potential unexpected events or in the event that it is not possible to achieve the primary goal (Plan A).

Some examples

  • Renegotiation of existing positions with the entire banking system, including with use of new financing. Where necessary, initiation of procedures to obtain a moratorium on payments, and rescheduling and refinancing of existing credit lines.
  • Access to an early composition procedure, enabling the establishment of a Debt Restructuring Agreement or submission of voluntary early arrangement with creditors, as direct or indirect going concern.
  • Disposal of entire shareholding or sale of the company (we support the business owner and the business, as legal advisor, throughout the sale procedure, referred to as “private bidding”).
  • Identification and entry of new majority or minority shareholder with injection of capital and sharing of a Business Plan aimed at creating value for the company and its shareholders.
  • Seeking new financing for the acquisition of competitors or third companies or production chain that has fallen into crisis.
  • Internalisation (pursuit and support for new foreign customers, agents, distributors, suppliers, etc.)

 

Formalisation of the appointment

Having shared the strategy, formalisation of the appointment requires a portion of the fee to be paid as a success fee.

Identification and organisation of specialised task force

We select, assist and coordinate professionals and specialised consulting firms, based on the characteristics of the operation. These may include tax experts, employment lawyers, financial advisors, industrial advisors, communication agencies, real-estate agencies and debt-purchasing companies.
The business owner will continue with our legal practice as a single point of contact for dialogue/management throughout the project.

Project implementation

We will implement the plan that has been previously defined with clear steps and designed to resolve any issues that arise along the way, all with a clear schedule for actions that are monitored on a day-to-day basis.

Achievement of goal and closure of relationship

We help the business and business owner until they have reached the shared goal, enabling them to “get out” of the initial situation. At the end of our appointment, it will be the company’s own professionals who continue in the management role.

Solutions
for corporate
distress

In the face of corporate distress, it is essential to be able to rely on competent professionals with the expertise to define appropriate strategies and avoid irreparable errors.
We are specialised in identifying the most effective legal tools, based on the individual situation, and providing the business owner with targeted consulting services to protect assets and navigate risks of personal liability.

Consulting areas:

Corporate distress

  • Procedures pursuant to Art. 67 of the Finance Law
  • Debt restructuring
  • Early arrangement with creditors
  • Pre-bankruptcy composition (direct or indirect going concern)
  • Pre-bankruptcy liquidation arrangements
  • In-bankruptcy composition.

Extraordinary transactions

  • Assistance also in identification of an investor for acquisition and sale of companies.
  • Entry into the share capital of majority and minority financial or industrial investors, all through consolidated relationships with leading foreign and Italian investment funds.

Corporate law

  • Assistance to owners in the establishment of companies and the definition of by-laws
  • Qualification of risk management
  • Definition of governance structures, including through shareholders’ agreements
  • Assistance for shareholders with conflicts of interest (participation in shareholder meetings and board meetings)
  • Assistance in the context of corporate arbitration proceedings (appearance before Business Courts)
  • Acquisitions and sales of minority and majority company stakes.

Case Study

Three cases in which the Legal Practice helped companies in corporate distress.

CASE 1

COMPANY:
– – € 500 MILLION TURNOVER
– MORE THAN 3,500 EMPLOYEES
– 15 FOREIGN BRANCHES

INDUSTRY:
MANUFACTURING OF BOILERS.

PROBLEM:
€ 310 million of debt, economic distress,
death of founder.

SOLUTION:

  • Identification of investment funds capable of guaranteeing new financing for the clearance of debts and to act as new owner in a global restructuring procedure.
  • Sharing of a Business Plan with the investment fund and heirs of the founder: agreement for sale of the majority stake and for the signing of shareholders’ agreements for governance, as well as purchase options on minority stakes for the heirs/owners.
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  • Early arrangement with creditors aimed at submission of a Debt Restructuring Agreement.
  • Issue of Participatory Financial Instruments with which, also following a clearance, banking debts have been converted.
  • Identification of investment funds capable of guaranteeing new financing for the clearance of debts and to act as new owner in a global restructuring procedure.
  • Sharing of a Business Plan with the investment fund and heirs of the founder: agreement for sale of the majority stake and for the signing of shareholders’ agreements for governance, as well as purchase options on minority stakes for the heirs/owners.
  • Early arrangement with creditors aimed at submission of a Debt Restructuring Agreement.
  • Issue of Participatory Financial Instruments with which, also following a clearance, banking debts have been converted.
  • Identification of investment funds capable of guaranteeing new financing for the clearance of debts and to act as new owner in a global restructuring procedure.
  • Sharing of a Business Plan with the investment fund and heirs of the founder: agreement for sale of the majority stake and for the signing of shareholders’ agreements for governance, as well as purchase options on minority stakes for the heirs/owners.
  • Early arrangement with creditors aimed at submission of a Debt Restructuring Agreement.
  • Issue of Participatory Financial Instruments with which, also following a clearance, banking debts have been converted.
  • Identification of investment funds capable of guaranteeing new financing for the clearance of debts and to act as new owner in a global restructuring procedure.
  • Sharing of a Business Plan with the investment fund and heirs of the founder: agreement for sale of the majority stake and for the signing of shareholders’ agreements for governance, as well as purchase options on minority stakes for the heirs/owners.
  • Early arrangement with creditors aimed at submission of a Debt Restructuring Agreement.
  • Issue of Participatory Financial Instruments with which, also following a clearance, banking debts have been converted.
  • Identification of investment funds capable of guaranteeing new financing for the clearance of debts and to act as new owner in a global restructuring procedure.
  • Sharing of a Business Plan with the investment fund and heirs of the founder: agreement for sale of the majority stake and for the signing of shareholders’ agreements for governance, as well as purchase options on minority stakes for the heirs/owners.
  • Early arrangement with creditors aimed at submission of a Debt Restructuring Agreement.
  • Issue of Participatory Financial Instruments with which, also following a clearance, banking debts have been converted.

CASO 2

AZIENDA:
– 100 MILIONI DI FATTURATO
– OLTRE 400 DIPENDENTI

SETTORE:
FACILITY MANAGEMENT, PROJECT FINANCING DI STRUTTURE OSPEDALIERI ED EDIFICI A USO PUBBLICO.

PROBLEMA:
Indebitamento di 150 milioni di euro; mancato passaggio generazionale.

SOLUZIONE:

  • Ricerca e selezione di un investitore industriale in grado di offrire nuova finanza, manager e mercati.
  • Condivisione del Progetto di Ristrutturazione dell’intero Gruppo Industriale tra investitore e famiglia proprietaria: accordo per la cessione della maggioranza e per la sottoscrizione di patti parasociali.
  • Concordato in bianco finalizzato al deposito di un piano di concordato preventivo in continuità indiretta con vendita dei rami di azienda tramite procedura competitiva.
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  • Modifica del Piano e integrazione dell’attestazione con trasformazione del concordato preventivo in continuità diretta grazie all’ingresso del Nuovo Socio e al rilascio di garanzia fideiussoria per il pagamento dei debiti concordatari.
  • A seguito di apposite istanze presentate durante il concordato in bianco si sono ottenute alcune tra le prime pronunce riguardo al Codice degli Appalti nella materia di autorizzazione alle stazioni appaltanti di pagare direttamente gli atisti e anche i sub appaltatori.
  • Concordato preventivo in Continuità diretta omologato dal Tribunale.

CASO 3

AZIENDA:
– 6,5 MILIONI DI FATTURATO

SETTORE:
SALUMIFICIO

PROBLEMA:
Indebitamento di oltre 8 milioni di euro.

SOLUZIONE:

  • Concordato in bianco finalizzato al deposito di un Accordo di Ristrutturazione dei debiti o di un concordato preventivo in continuità.
  • Ricerca di un investitore industriale con cui si era giunti ad un Accordo con la famiglia proprietaria; si era costituita una Newco che aveva presentato una offerta in grado di supportare il pagamento dei debiti concordatari: tale proposta era però condizionata all’andamento del mercato futuro e, quindi, non era attestabile ai fini del concordato preventivo.
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  • Mancato deposito del Piano Concordatario nei termini fissati del Tribunale.
  • Ricerca di Nuovo Partner Industriale e in grado di apportare nuova finanza: costituzione di un’altra Newco con all’80% i nuovi soci e al 20% i figli dei due soci della ‘vecchia’ azienda
  • Istanza di auto fallimento.
  • Formulazione da parte della Newco di un’offerta irrevocabile per ottenere l’affitto dell’azienda nonché l’acquisto della stessa, degli immobili e del marchio con deposito di caparra confirmatoria.
  • Istanza per ottenere dal Tribunale l’affitto dell’azienda in tempi brevi altrimenti si sarebbero persi tutti i clienti.
  • Nonostante il periodo di lockdown si è riusciti ad ottenere il trentesimo giorno dal fallimento il decreto autorizzativo alla sottoscrizione di contratto di affitto di azienda in attesa di procedere alla gara che verrà invece effettuata per la vendita.

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