WHAT IS DISTRESSED INVESTING?

By Randall Cecola

What Is Distressed Investing?

Randall Cecola has excelled in the field of distressed investing, acquiring companies on the brink of failure, and transforming them into high-performing assets. His successful efforts span a variety of business sectors, including companies in the areas of human resources, real estate, and packaging.

What Is Distressed Investing?

Yet while Randy Cecola has earned a reputation for excellence in distressed investing, many people remain unfamiliar with this particular investment approach. Distressed investing involves the acquisition of distressed assets, in this case, companies that are suffering severe financial problems that have rendered them unprofitable and, in many cases, unable to access traditional capital markets.

What Is Distressed Investing?

Using a variety of techniques taken from hedge funds, real estate firms, and private equity, investors purchase the distressed companies at discounted prices and work to transform them into profit-turning assets. The field is challenging because it requires the ability to see potential in underperforming businesses and to modify their practices and strategies to turn them around. Yet successful investors like Cecola can enjoy the satisfaction of knowing that they have transformed a struggling enterprise and added value to the economy at large.