COVER STORY
Regaining Profitability: Five Key Steps to a Successful Turnaround - Kelley A. McLaren and Luis Lluberas were part of the team that brought Bost Distributing back to financial viability, arranged for a sale and rebranding and saved the jobs of more than 50 workers. For their efforts, the TMA honored the team with the Small Company Turnaround of the Year award. McLaren and Lluberas offer five steps for a successful turnaround that can be applicable to all companies, large or small.
FEATURES
Turnaround Managers’ Survey: The Good News: Bank Referrals Fuel Turnaround Activity The Bad News: Compared to Last Year, Fewer Opportunities Expected - Turnaround managers expect fewer opportunities than they did one year ago, according to data from our 2016 Turnaround Manager’s survey. On the bright side, banks continue to provide the most referrals to turnaround managers.
An M&A Advisor’s Perspective: Eight Common Mistakes Companies Make During a Turnaround - Turning around and/or selling the assets of a distressed company is filled with pitfalls. Ken Mann points out eight common mistakes that occur during the turnaround process. Avoiding these mistakes is tantamount to realizing a satisfactory recovery.
View from the TMA President Making Connections that Count at the Annual - If you are already a successful turnaround professional, do you really need to take time away from your business to attend the TMA Annual? TMA President David F.W. Cohen explains the variety of opportunities for networking with lenders and attorneys as well as fellow turnaround pros at this year’s Annual. Not to mention the fact it is being held at Disney’s Yacht Club in Lake Buena Vista, FL.
Slow and Steady: Battaglia and Encina Business Credit — in the ABL Game for the Long Haul - Starting a new nonbank ABL is not for the faint of heart, says Encina Business Credit CEO Marty Battaglia. The 30-year ABL veteran spoke with ABF Journal editor Nadine Bonner about the challenges of starting a new business and the slow, sure future he envisions.
TURNAROUND CORNER
Lenders and Turnaround Professionals: A Changing Relationship - Traditionally, lenders and turnaround professionals have worked in tandem to assure a positive outcome for the lender and the borrower. But since the onset of the Great Recession, that relationship has undergone many changes. Veteran turnaround professional and ABF Journal Contributing Editor Howard Brownstein shares some observations on this changing relationship.
SPECIALTY LENDING
Law Firm Financing on the Stand: Controversial Financing Enables Firms to Withstand Long-Term Litigation - Litigation involving hundreds or thousands of clients can take years to resolve, putting a financial strain on law firms working on a contingency basis. While banks are willing to provide loans based on a firm’s hard assets, law firm finance companies are willing to lend based on anticipated fees, account receivables and other assets. Attorney Kelly Anthony explains this new type of specialty lending and defends it against industry detractors.
LEGAL LINES
What’s in Your Intercreditor Agreement? For First Lien Lenders, the Devil’s in the Details - For many years, bankruptcy courts failed to enforce intercreditor agreements because the parties involved were not in bankruptcy. Courts today are enforcing these agreements strictly according to their text. Failure to note the precise wording of an intercreditor agreement can trip up a first lien lender and give the second lien lender the upper hand during bankruptcy proceedings.
FINAL CUT
Motley Fool: Wells Fargo Poised to Overtake Bank of America - ABF Journal illustrator Jerry Gonzalez shows Wells Fargo bulking up to take over Bank of America’s spot.