LONDON (Reuters) – Turnaround consultancy firm Alvarez & Marsal (A&M) said on Monday it had created a new European M&A advisory team to cater for growing demand for specialist advice on takeovers of distressed companies.
The move, which sees 12 new advisers join the firm, underscores expectations of a bumper year for deals involving companies struggling to stay afloat as economic conditions worsen.
Alvarez & Marsal said the new hires will help private equity and trade buyers assess distressed opportunities as well as assisting them in valuing and preparing businesses for sale.
“While financing for new transactions remains challenging, there is still much activity across Europe, particularly in the mid-market, as well as in distressed transactions,” said the new group’s co-head and managing director, Colie Spink, in a statement.
The new division will also conduct due diligence on companies needing independent evaluation of their trading and future viability before negotiating bank debt and covenants.
Alvarez & Marsal launched a transaction advisory group for the United States in 2006.
(reporting by Simon Meads; editing by John Stonestreet)