KOTRA Hosts Webinar on M&A of Overseas Limit Companies in SoBuJang Sector

Introduction of 40 Companies Focused on Materials, Parts, and Equipment Sector

KOTRA will hold a webinar on "Overseas M&A of Material, Component, and Equipment Limit Companies" on the 24th of this month. (Photo by KOTRA)

[Asia Economy Reporter Kim Ji-hee] KOTRA announced on the 20th that it will hold a webinar on the "Overseas M&A of Marginal Companies in Materials, Parts, and Equipment" on the 24th. KOTRA expects an increase in marginal companies facing difficulties due to deteriorating financial structures amid the rapid changes in economic conditions caused by the COVID-19 pandemic.

Since March, KOTRA has investigated 6,500 companies that filed for new legal management in Germany, Spain, the United States, France, and Italy. Subsequently, 40 companies, mainly in the materials, parts, and equipment sector, were selected to be introduced in this webinar.

Companies under legal management are considered quasi-assets as debt recovery through sales is prioritized. Representative examples include the French luxury bicycle wheel brand "Mavic" and "Brooks Brothers," known for dressing U.S. presidents. These companies were sold within months after filing for legal management.

According to KOTRA's survey, the number of legal management filings in the U.S. in the second quarter of this year increased by 46% compared to the same period last year, while Germany and Spain saw decreases of 74% and 62%, respectively. It is analyzed that the impact of COVID-19 was more significant in the U.S., where legal management filings are left to corporate discretion. In Europe, the obligation to file for legal management has been deferred due to COVID-19.

Additionally, KOTRA plans to introduce 20 cases of general overseas M&A listings and equity sales unrelated to legal management through the briefing session. Information from ASEAN regions, including Vietnam, is also included.

Jang Sang-hyun, CEO of KOTRA Invest Korea, stated, "Although many companies are struggling due to COVID-19, efforts to prepare for the post-COVID era cannot stop," adding, "We hope this seminar will serve as an opportunity for our small and medium-sized enterprises to find new opportunities."

This content was produced with the assistance of AI translation services.