The client in this case was requested by its lender to work with a Turnaround Management consultant because it had tripped a covenant on its loan and had lost the confidence of that lender. While this is a classic turnaround situation, this client had lost its way due in large part to marketing, sales and top-line issues. Continue reading The Win-Win-Win-Win Turnaround – Winner Number 1 – The Client
Category Archives: Blog
As the PE Industry Approaches its “Deal Cliff” – More Bad News
The IMF today published more bad news for the middle market and for the PE sponsors looking to find value in their aging middle market portfolios. The IMF today confirmed that the global economy was growing even slower than previously thought and will grow slower than previously thought for at least the next 2 years. Continue reading As the PE Industry Approaches its “Deal Cliff” – More Bad News
June 2012 Was Likely the Most Active M&A Month Since Early 2011
For weeks we have been blogging about the overall weakness in the PE industry and specifically about weaknesses in capital formation, deal activity and most of all about how few investment exits there were in the industry. Just last week, we blogged about the poor May 2012 results vis-à-vis May 2011 and we like many others speculated that June 2012 and Q2 2012 as a whole could be as poor a month/quarter as Q1 2012 (which was one of the PE Industry’s poorest quarters in several years). Continue reading June 2012 Was Likely the Most Active M&A Month Since Early 2011
Ernst & Young on Growth – If a Company Needs Growth It Needs a Plan
For years, E&Y has been surveying corporations around the world on many subjects including a recent thread on what it takes to grow a company in today’s markets. This year’s report was especially sobering in a couple of ways. One such sobering thought was that after 2-3 years of “recovery” one would think that growth on a company level would be getting easier. However, the E&Y survey confirmed that growth for most companies it is actually getting more difficult to achieve. Continue reading Ernst & Young on Growth – If a Company Needs Growth It Needs a Plan
Merrill Corporation Releases June 2012 Report on M&A Activity
Global M&A activity results continue to indicate very weak deal making activity especially in North America and Europe. Continue reading Merrill Corporation Releases June 2012 Report on M&A Activity
Generating Organic Growth from Portfolio Companies in the PE Industry
Summary
A host of recent studies from the likes of Deloitte, Bain & Company, McGladrey and others have all concluded the same thing: The PE Industry and the broader middle market have reached a critical tipping point where organic portfolio company growth is perhaps the preeminent need. However, as most PE firms and middle market companies know already, one of the only things clearer than the need for growth is the difficulty associated with attaining that growth. Continue reading Generating Organic Growth from Portfolio Companies in the PE Industry
Rite Aid Proves Again – It Can Be Much More Beneficial to Retain Customers Than to Find New Ones
For years, Rite Aid was toying with the idea of instituting a customer loyalty program. They finally put one into place in the last few years and the program is now helping one of the Drug Industry’s least productive retailers to generate (finally) strong results. Continue reading Rite Aid Proves Again – It Can Be Much More Beneficial to Retain Customers Than to Find New Ones
Deloitte Study Finds That Technology in the Middle Market Means Data Collection
When one thinks of technology needs in the middle market, one usually thinks of new hardware and software needs and upgrades. Yet, in a impressive sign of sophistication, the middle market managers surveyed generally looked at technology in a more enlightened way – they viewed technology correctly in terms of the data that technology collect for business review and analysis. Continue reading Deloitte Study Finds That Technology in the Middle Market Means Data Collection
Deloitte Middle Market Study Has Some Troubling Findings
A recent Deloitte survey of middle market company managers* found that the managers think that the US and Canadian markets will have the slowest growth in the world in 2012. While that is not going to happen (as both markets are actually growing as fast as most other developed world markets), the management sentiment is still both confusing and somewhat troubling. Continue reading Deloitte Middle Market Study Has Some Troubling Findings
WSJ Had it Right in January-It Has Only Become Worse Since Then
In January 2012, Greg Zuckerman of the Wall Street Journal spoke of the decreasing returns of the PE Industry and the implications of those declines. He spoke about the need for much more intensive portfolio management. However, at the time, he could only use Q3 and Q4 2011 data. Since then, we all know that the activity of the PE industry has fallen off the cliff. The problems have only become more intense and the challenges for portfolio management have only become greater. Continue reading WSJ Had it Right in January-It Has Only Become Worse Since Then