Corporate Acquisition Through Bankruptcy Auctions

Abstract

The objective of this case is to teach and initiate a class discussion about how to find potential buyers for a bankrupt firm. The discussion is facilitated by a real world case example that focuses on strategies based on use of databases such as D&B or Sorkins, trade associations networks, trade magazines, information on recent industry acquisitions, and use of private equity groups. Issues relevant to optimal design of a bankruptcy auction and the required bidding process for achieving an optimal sale price are also addressed.