About UAT Group
Underperforming Asset Trading Group has a proven track record that spans decades of trading underperforming assets in Asia. We are autonomous, adjusted, and with extensive resources.
As a wealth manager in underperforming assets, UAT Group is strongly positioned in the market having the right people on board with more than 20 years of experience in restructuring and trading distressed assets for its funds and clients.
Traditionally, only a few restructuring solutions have worked for stakeholders in a distressed situation, often involving wiping out equity stakes and discounts to creditors. Today’s M&A world is a seller’s market. An abundance of capital chases too few companies to purchase. Private equity funds have a record amount of capital to deploy, recently surpassing a trillion dollars. Managers of private equity funds are under pressure to put their funds to work. Operating companies (or strategics) have all-time high stock prices and a record amount of cash on their balance sheets, increasing the average acquisition EBITDA multiple more than seven times. They have done everything to reduce costs, and are now turning to additional revenue sources to add profit. With the economy continuing to grow slowly, the easiest way to boost market share is an acquisition.
A good example of a successful distressed sale was UAT Groups recent sale of an industrial staffing company. The company, a $350 million revenue industrial staffing firm, grew too fast to support its own weight. The entrepreneur-run company had over-borrowed line availability and fell behind with trade creditors including tax authorities. The company faced a severe liquidity trap due to the overhang of delinquent tax liabilities. UAT Group developed a bold and comprehensive sale process that enabled potential buyers to see the true value of the company. Working hand-in-hand with a restructuring firm, UAT Group sold the firm to a strategic buyer.
There are many ways to run a distressed sale process, but a skilled and knowledgeable investment professional can help a distressed company turn a tragic losing situation into a “best possible” outcome for all stakeholders involved.