For an underperforming company, embracing change is vital to completing a successful turnaround. By recognizing the value in doing things differently, these companies can create a more solid foundation and effectively prepare for a rewarding future.
Technological change and shifting customer preference can occur rapidly. Huron Financial’s Ray Anderson and Stuart Walker present a framework for situational analysis, turnaround strategies and tactics to address the financial challenges involving technology companies.
In April 2012, storied but struggling manufacturer Milacron was sold to CCMP Capital. In February 2013, Milacron announced the acquisition of Mold-Masters for $975 million. Contributing to Milacron’s successful turnaround were a strong portfolio of products and recognized industrial brand names and a comprehensive strategy to exploit its offerings and to engage talented management to execute the plan.
This issue’s FinalCut presents a whimsical rendering of the merger of PacWest Bancorp and CapitalSource and MB Financial’s acquisition of Taylor Capital.
Brian Phillips and Scott Eisenberg of Amherst Partners note that fraudulent activity was uncovered in nearly every significant financial advisory case the firm has encountered over the last two to three years. Here they present two cases (one hypothetical and one real-life) and offer five lender techniques to help reduce bank fraud.
Inclusion of make-whole claims in a bankruptcy is often a controversial issue between the debtor and creditors. However, as Renée Dailey and Katherine Lindsay point out, despite recent challenges in American Airlines and School Specialty, make-whole claims in bankruptcy are still flying high and earning passing grades.
Since the recession, a CFO’s job is ever changing and increasingly complex, according to King Trade Capital’s Bryan Ballowe. Among the many hats donned, a CFO’s sole focus is oftentimes seeking access to liquidity and maintaining sustainability. Ballowe explains that purchase order financing offers a valuable resource to help CFOs execute profitable sales opportunities, and thus growth.
Turnaround management expert John Collard points out that adding outside directors to a private company’s board can generate six key advantages — independent perspective, strategic thinking and planning, experience and objectivity, contacts, capital infusion and deals.
ABF Journal contributing editor Howard Brod Brownstein spends time with Robert Radway, chairman and CEO of NXT Capital, to discuss how the company has developed since its 2010 launch, including closing more than 232 deals totaling $5.3 billion in commitments through June 2013.
Neville Grusd, COO at Merchants Factors, provides commentary on how the factoring industry changed in the post-recession environment and walks us through a series of scenarios that give dimension to this multi-faceted industry. Grusd adds a few thought-provoking insights to provide texture in describing why the current environment is a “mixed bag” for factors.