A $400 million diversified energy company ran into a cash crunch and tripped several covenants on loans with a large regional bank. The lender gave the company several Turnaround Management Firms to choose from to help it to better understand and manage its cash flow and needs. While the case appeared to be a straight forward financial case, the CEO of the company thought that poor marketing and sales were at the heart of the his company’s problems. Moreover, the CEO was disproportionately concerned with a $3 million consumer entertainment subsidiary at the company. Given the CEO’s concerns, the company chose the only Turnaround Management Firm that it interviewed that offered consumer and business to business sales and marketing advisory services. Continue reading The Turnaround Where the Tail Effectively Wagged the Dog
Category Archives: Turnaround Management
A Turnaround Case That Generated “Instant” Top-Line Growth
In this case, a legal services company went into default on its loan. The PE sponsor was forced by the company’s lender to bring in a turnaround firm to serve as a CRO and to provide the bank with clarity on the company’s finances. After the initial financial evaluation it became clear that marketing and sales issues were at the heart of the company’s problems. The turnaround firm on the case was subsequently able to generate significant additional revenues on the project because it possessed its own marketing and sales advisory. Continue reading A Turnaround Case That Generated “Instant” Top-Line Growth
A Turnaround Case with Winners all Around
A premium Jewelry company tripped a covenant on its loan with one of the largest US middle market lending banks. The bank (which had been exiting its Jewelry credits for some time) asked the company to work with an advisor to assess its financial condition and to help it to find an alternative lender. Continue reading A Turnaround Case with Winners all Around
Turnaround Case Study – A Hedge Fund Wins Control of a “Crown Jewel”
A consumer company with sizeable regional market shares had suffered financial losses from poor plant operations and ineffective marketing strategies and implementation. The Company filed Chapter 11 and a turnaround management firm was brought in by the lending group and the 2nd lien holding hedge fund. The Turnaround Management Firm’s scope was to do an assessment and to development a plan to help the company exit from bankruptcy. Continue reading Turnaround Case Study – A Hedge Fund Wins Control of a “Crown Jewel”
Turnaround Case Study – The 363 Sale That Went Better Than Expected
In this case, sales, marketing and operational consulting capabilities provided by Michael Roth Advisors helped a Turnaround Management Firm to secure a case, a client to improve performance during a turnaround management process and a lending group to generate higher returns from a 363 sale. Continue reading Turnaround Case Study – The 363 Sale That Went Better Than Expected
Bad Sign for Turnaround Management Professionals?
WSJ article says that PE firms and Hedge funds are picking up the lending slack to small and middle market companies – while banks are usually open to using professionals, the PE industry is very difficult to pierce. Very interesting data in the article on lending data. http://online.wsj.com/article/SB10001424127887324637504578567383459564510.html?mod=WSJ_hps_LEFTTopStories
Sales and Marketing Consulting as a Revenue Platform for Turnaround Management Firms
In a still slow Turnaround Industry, some Turnaround Management Consulting firms may want to consider an “all of the above” strategy for generating additional consulting revenues. One such strategy that has proven effective for at least one prominent Turnaround Management Firm has been the deployment of a supplemental marketing and sales force effectiveness advisory. Continue reading Sales and Marketing Consulting as a Revenue Platform for Turnaround Management Firms
Was PE Dealmaking Activity Strong or Weak in Q2 2012? The Experts Disagree
Just last week, a Preqin press release proclaimed that “There were 705 private equity-backed buyout deals in Q2 2012, valued at an aggregate $60.4bn – a 37% increase in deal value from Q1 2012, and a 6% increase from the $56.8bn in Q4 2011. In addition, 293 private equity-backed exits were announced in Q2 2012, with an aggregate value of $77.7bn – a significant rise from the $47.2bn in exit value seen in the previous quarter.” Continue reading Was PE Dealmaking Activity Strong or Weak in Q2 2012? The Experts Disagree
One Way to Generate Incremental Revenue for a Turnaround Management Consultant
Fee generation has been a challenge in the turnaround management industry over the past few years. Yet, as our most recent case demonstrated again, introducing operational sales and marketing consulting services into an engagement can be a consistent source of new revenue for Turnaround Management Firms. Continue reading One Way to Generate Incremental Revenue for a Turnaround Management Consultant
Winner Number 3 – The Turnaround Management Firm
This still unfolding case is a study in how turnaround management (TM) consulting firms can use niche strategic consulting services to help win and then extend engagements into long term, highly profitable implementation cases. Continue reading Winner Number 3 – The Turnaround Management Firm