Your first-step guide to the key legal and practical points surrounding distressed M&A transactions in Bulgaria , covering common structures, packaging and transferring assets, the transfer of liabilities and more.
Market climate
How would you describe the general market climate for distressed M&A transactions in your jurisdiction?
While certain business sectors in the country, primarily in the retail, construction and hospitality and leisure segments, have appeared to be highly vulnerable to the covid-19 pandemic, they were cash rich prior to the crisis and in the short term it is not expected that they would have liquidity issues. Given the second wave of the pandemic, and if no sufficient governmental support is provided, mid- to long-term, the insolvency threats might trigger single-asset sales and attract individual opportunistic buyers.
Large-scale divestments that might be lucrative for funds can be expected to be brought to the market later than in other parts of Central and Eastern Europe and South East Europe, as the local owners will try to maintain control by various forms of restructuring.