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Clifford Chance

Clifford Chance


Opportunities in a downturn: The Private M&A Play for Distressed Tech Companies in the US

8 February 2023

The tech sector has had a tumultuous year. Rising inflation and corresponding interest rate hikes have had a sobering effect on the economy and battered the tech sector. This article overviews key considerations for buyers in the context of acquisitions of private companies under US laws. After first assessing the strategic benefits of the different deal structures used in distressed tech acquisitions, we highlight some of the unique risks inherent in distressed tech investments and offer some practical strategies that buyers can use to circumvent these risks.

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