M&A processes take months — public auction produces results in weeks — more cost-effective, final.
Advantages of utilization in accordance with § 1235 BGB:
Fast and legally compliant alternative to traditional M&A processing
Clear deadlines, no renegotiation
Significantly lower costs than M&A, higher net proceeds
BGH-compliant realization of pledged rights (§ 1235 BGB).
For pledgees, financiers, their legal representatives and commercial lawyers who want to justify realization decisions in a legally compliant, economically comprehensible and low-liability manner — especially in the case of company shares, trademarks and other rights in distressed cases.
Legal rule instead of market custom:
Awareness of this issue is increasing significantly. The BGH ruling of 27.10.2022 (IX ZR 145/21) sets clear limits for the insolvency administration — and shows why Section 1235 BGB (public auction) significantly reduces the liability risks for all parties involved in the proceedings.Distressed M&A with a focus on costs and liability:
How retainers, overheads and fees burden the estate — and what personal risks arise for administrators, financiers and pledgees.Public auction as a “safe harbor”:
Award as a sovereign act, clear endgame situation without renegotiation — and documented valuation that can be represented to creditors and courts.
What you get in this white paper
This white paper offers a legally sound, practice-oriented comparison of distressed M&A and public auctions as a means of realizing company shares and IP rights. The focus is on creditor protection, cost certainty and liability risks — not abstract theories, but concrete decision-making bases for your daily practice. The following advantages in particular result from the realization pursuant to Section 1235 BGB:
- Fast & efficient: standardized process in 4–6 weeks, contracts and digital infrastructure available, fixed deadlines, low transaction costs.
- Legally compliant & final: Award as a legally binding act of sovereignty — not renegotiable with clear legal consequences, exclusion of warranty, acquisition in good faith, irrevocable determination of value.
- Transparent & fair: The same information and deadlines for all interested parties examined (NDA); confidentiality in the process remains guaranteed.
- Market-opening & revenue-boosting: Competition through open market participation, market development and investor network, regular best possible returns.
- Independent & mediative: Sworn to independence and protection of the interests of all parties to the proceedings.
Your “safe harbor” for the exploitation of shares & intangible rights
For over fifteen years, we have been concentrating on one of the core tasks of the publicly appointed and sworn auctioneer: the realization of company shares in distressed situations.
Legally legitimized according to § 34b GewO, we are sworn to our independent, impartial and proper conduct in the proceedings.
The liquidation takes place as a public auction in accordance with Sections 1235, 383 BGB (new version) — a legally regulated liquidation option without complex contractual structures or multi-stage negotiations.
With the acceptance of the bid in accordance with Section 156 BGB, the legal effect is immediate; signing and closing coincide.
What distinguishes the public auction
- Legally compliant & final: Award as a legally binding sovereign act — not renegotiable with clear legal consequences.
- Transparent & fair: the same information and deadlines for all interested parties examined (NDA); confidentiality in the process remains guaranteed.
- Fast & efficient: Standardized processes, fixed deadlines, low transaction costs.
- Market-opening & profit-enhancing: Competition through open market participation.
- Independent & mediative: Sworn to independence and protection of the interests of all parties to the proceedings.
