Eric Lemmer, Esq., Attorney & Counselor at Law, Admitted in Virginia and the District of Columbia, Arlington Law Group
Given the unprecedented economic turmoil caused by COVID-19, there has been a substantial uptick in distressed asset transactions (i.e. the sale of something well below its traditional market value). We have been surprised by the number of these transactions that have lacked traditional due diligence and contingency planning. Seemingly, parties have been willing to ignore traditional risks and are increasingly motivated by fear or greed. However, distressed asset transactions typically have heightened risks associated with them, which justify additional planning from a legal perspective, not less.
Given the unprecedented economic turmoil caused by COVID-19, there has been a substantial uptick in distressed asset transactions (i.e. the sale of something well below its traditional market value). We have been surprised by the number of these transactions that have lacked traditional due diligence and contingency planning. Seemingly, parties have been willing to ignore traditional risks and are increasingly motivated by fear or greed. However, distressed asset transactions typically have heightened risks associated with them, which justify additional planning from a legal perspective, not less.
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