Inside Insolvency Transactions: Understanding Distressed M&A in Canada

In this episode of Inside Commercial Banking, hosted by Robert Bezede, Karen Kimel, Partner, shares insights from more than 25 years of experience in insolvency, restructuring and the sale of distressed businesses. She explains how insolvency proceedings shape the sale process and why distressed mergers and acquisitions differ significantly from traditional business transactions.

Drawing on her experience advising businesses, lenders and stakeholders through complex restructuring situations, Karen explores the Canadian insolvency framework, including receiverships, bankruptcies, CCAA proceedings and Notices of Intention (NOIs). She also discusses stalking horse bids, reverse vesting orders, accelerated sale processes, valuation considerations and the factors courts consider when approving distressed transactions.

KEY HIGHLIGHTS

• Understanding Canada’s insolvency framework: the role of receiverships, bankruptcies, CCAA proceedings and Notices of Intention in business restructurings.
• Distressed M&A versus traditional business sales: how insolvency changes the transaction process, timelines and buyer expectations.
• Selling a distressed business: the challenges of valuing, marketing and completing transactions under financial pressure.
• Stalking horse bids and reverse vesting orders: how these restructuring tools can help maximize value and facilitate successful transactions.
• The role of the courts: the considerations involved in approving insolvency transactions while balancing the interests of stakeholders.
• Advice for lenders and commercial bankers: practical insights for navigating distressed lending situations and supporting successful outcomes.
• Opportunities for buyers: why distressed transactions can present unique investment opportunities for strategic and financial purchasers.

Whether you are a commercial banker, lender, business owner, investor or M&A professional, this episode offers valuable insight into how distressed businesses are marketed, sold and restructured within Canada’s insolvency framework.