Distressed M&A transactions pose greater risks than traditional “healthy” acquisitions, but the rewards may be substantial with lower costs and certain legal protections for the acquirer. The impact of COVID-19 on the global economy has exacerbated many of these hazards and added complexities to distressed transactions. Investors searching for a diamond in the rough must have considerable risk appetite, laser focus, and an experienced team willing to, and capable of, moving rapidly. To better manage the risks associated with purchasing distressed assets, buyers must be cognizant of both the hidden traps and opportunities to structure distressed transactions appropriately to maximize the value and return on investment.