It also makes a strong economic sense to invest in a stressed asset that could be turned around rather then invest in a green field venture. The simple reason being that a stressed business has already seen the worse, the mistakes committed during the irrational exuberance period of a project are behind it. Therefore with time, money, patience and expertise it is far more paying and secure to nurse a stressed asset back to health than to start a green field project with its attached uncertainities.

• Therefore, it can be deduced that for a corporate or a new business in expansion mode, it would be more prudent of them to buy/acquire a stressed asset that fulfills the need rather than acquire something new and fresh.
• The price at which the relevant Stressed asset is available shall be atleast a benchmark aganinst which the acquisition cost of new asset would be compared
• It is only the Resolution process of IBC which provides a unique opportunity to any corporate to buy out its own competitior – that too in staggered payments

Hence, Stressed Assets Investment is not only a screaming opportunity not to be missed but also is the future friver of corporate M&A and surely an integral part of the lexicon of corporates and investors alike.

Welcome to the World of Stressed Assets!!