How do you find distressed businesses that want to sell?

by a searcher

3 years ago

Hey there, I just recently joined this community and thought why not share what I am currently trying to figure out. 

In the last month, I have decided to focus on finding distressed companies that have a ton of debt. Since all my previous hunting was more focused on healthy businesses this has been an interesting shift for me. I have been reaching out to accountants, lawyers, etc. but I am curious how this community would approach this. 

Anyway, I am curious how you would go about finding businesses that are doing yearly revenue in the $25-100mil range that are weighed down with a significant amount of debt and are looking for solutions. 

Cheers.

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21 comments

searcher from University of Western Ontario

In most jurisdictions, companies are required to file a public notice when they have filed for Chapter 7, 11, CCAA, etc. You can find these listings and see if they are running a sales process. Many times, they will.

5 months ago | like reply | 0 likes

searcher from University of Pennsylvania - The Wharton School

If you're focused specifically on distressed, I would get access to Reorg Research, specifically their First Day Database for BK filings. You can sort those based on bankruptcy size and read through the first day filings. It's only in-court stuff for the smaller companies, but a good source all the same. At a minimum, you may be able to use it to get looped into the restructuring advisors who operate on smaller deals.

3 years ago | like reply | 2 likes

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