This case study reviews the successful turnaround of a middle market construction company.
The case offers an illustration of the extreme value creation that is possible in a turnaround, as well as the many challenges of engineering a successful turnaround.
Turnaround of a Family-owned CPG CompanyDavid Johnson
Abraxas Group recently designed and led the successful turnaround of a family owned company during the COVID-19 pandemic. The success of this turnaround offers valuable lessons.
UX & Design Thinking for BI and Analytics ApplicationsJeff Hendrickson
I use this deck to kick off every Design Thinking workshop I do around the globe. It nicely sets up the workshop by introducing the core concepts and practices I teach in either two hour quick start sessions, or three day engagements with a customer.
The defining crucible of leadership in a business transformation is the process of rebuilding stakeholder relationships and crafting a narrative of future success that effectively sets the stage for economic viability moving forward.
Middle Market Strategy in the Age of DisruptionDavid Johnson
Strategy, particularly in the middle market, is under attack from many sides. This article outlines the benefits to middle market leaders, investors and other key stakeholders in making the commitment to a strategic mindset.
A Brief Introduction to The Strategic Offsites GroupBob Frisch
A thumbnail overview of The Strategic Offsites Group, the world's leader in the design and facilitation of strategy offsites for executive leadership teams and Boards of Directors.
A good strategy is the blueprint for business success. For many organizations, mergers and acquisitions
are a critical component of their blueprint. Although the value drivers such as cost cutting, the promise of
new channels and customers, and improved competitive positioning may vary from company to company,
one thing is constant – after the deal is done, executives need to refresh their strategy and they need to
do it fast.
Turnaround of a Family-owned CPG CompanyDavid Johnson
Abraxas Group recently designed and led the successful turnaround of a family owned company during the COVID-19 pandemic. The success of this turnaround offers valuable lessons.
UX & Design Thinking for BI and Analytics ApplicationsJeff Hendrickson
I use this deck to kick off every Design Thinking workshop I do around the globe. It nicely sets up the workshop by introducing the core concepts and practices I teach in either two hour quick start sessions, or three day engagements with a customer.
The defining crucible of leadership in a business transformation is the process of rebuilding stakeholder relationships and crafting a narrative of future success that effectively sets the stage for economic viability moving forward.
Middle Market Strategy in the Age of DisruptionDavid Johnson
Strategy, particularly in the middle market, is under attack from many sides. This article outlines the benefits to middle market leaders, investors and other key stakeholders in making the commitment to a strategic mindset.
A Brief Introduction to The Strategic Offsites GroupBob Frisch
A thumbnail overview of The Strategic Offsites Group, the world's leader in the design and facilitation of strategy offsites for executive leadership teams and Boards of Directors.
A good strategy is the blueprint for business success. For many organizations, mergers and acquisitions
are a critical component of their blueprint. Although the value drivers such as cost cutting, the promise of
new channels and customers, and improved competitive positioning may vary from company to company,
one thing is constant – after the deal is done, executives need to refresh their strategy and they need to
do it fast.
Results of a survey I participated in at the beginning of the year around business improvement groups. An opportunity to break away from the competition during hard times !
13 commandments for crafting successful business strategiesDr Wilfred Monteiro
Most upcoming enterprises are so caught up in fulfilling targets for the next quarter that they have no time to plan and analyse and think of LEVEL NEXT as the achievement platform...here are some useful tips to plan strategically
Post Merger Integration Framework And Challenges PowerPoint Presentation SlidesSlideTeam
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of twentyfive slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Post Merger Integration Framework And Challenges Power Point Presentation Slides complete deck.
Managing an asset management business is unique. Not only is it a professional service business but extraordinary portfolio management and sales talent is critical to the business. Balancing the business and the profession is essential.
Post Merger Integration Integrating It PowerPoint Presentation Slides SlideTeam
Merge two organizations into one successfully with content-ready Post Merger Integration Integrating IT PowerPoint Presentation Slides. Execute the process of combining two organizations into one with ease and clarity. Use ready-made post-merger integration PPT slideshow for a better acquisition. Merge assets, people, resources, tasks, IT, etc. using mergers and acquisitions PowerPoint templates. This complete business acquisition PowerPoint presentation deck comprises of templates such as role of IT in post-merger integration, synergies in IT integration, approaches to IT integration, IT integration framework, and post-merger IT planning, Incorporate these templates for a better execution of acquisitions of two businesses. This ready-to-use PowerPoint presentation deck is suitable for processes like program management, project management, change management, corporate finance, management due diligence and more. Incorporate the right synergies, build capabilities, shape the new culture with post-merger Mckinsey PPT templates. Make sure that the two teams are integrated in the best possible way and all the necessary steps have been taken using post-merger checklist. Make the complex process of combining and rearranging businesses easy with the help of post-merger integration IT PowerPoint presentation templates. Encourage acts that benefit everyone with our Post Merger Integration Integrating It PowerPoint Presentation Slides. Be able to do good for the community.
Ownership transition activity in the architecture and engineering (A/E) space is certainly on the upswing with the Baby Boomer generation looking to retire in increasing numbers. But, how ready are you for taking on the task of transitioning ownership of your firm? Have you primed the pump with a list of possible successors?
In Best Practices in Strategic Planning for A/E Firms, we begin by providing you with the results of a survey that PSMJ did with 75 firms on how they conduct strategic planning.
Next, we provide you with some information on what we have gleaned from the survey. We have mined the data to figure out what works and what doesn’t work in strategic planning.
Then, to help you conduct better strategic planning at your firm, we talk specifically about some things that we have learned over the many years we have been engaged in strategic planning with architecture and engineering firms.
We wrap up with some recommendations on best practices in strategic planning. Our goal is to provide new insight into how your firm can maximize your strategic planning efforts for success in 2016.
Request Talent Management Demo http://www.PeopleStreme.com
Know your people, find your people, keep your people. PeopleStreme's Talent Management Generation3 is innovative talent management software that enables organisations to successfully manage their talent, set up career development plans, improve the succession planning process and drive employee retention rather than respond to unexpected resignations.
Companies cannot afford any form of waste in
their businesses. Trimming the fat won’t help in
many cases. It’s not enough. Some businesses
will have to reorganize or reinvent themselves to
survive. Contact CGN for more information on this service offering.
Results of a survey I participated in at the beginning of the year around business improvement groups. An opportunity to break away from the competition during hard times !
13 commandments for crafting successful business strategiesDr Wilfred Monteiro
Most upcoming enterprises are so caught up in fulfilling targets for the next quarter that they have no time to plan and analyse and think of LEVEL NEXT as the achievement platform...here are some useful tips to plan strategically
Post Merger Integration Framework And Challenges PowerPoint Presentation SlidesSlideTeam
Enhance your audiences knowledge with this well researched complete deck. Showcase all the important features of the deck with perfect visuals. This deck comprises of total of twentyfive slides with each slide explained in detail. Each template comprises of professional diagrams and layouts. Our professional PowerPoint experts have also included icons, graphs and charts for your convenience. All you have to do is DOWNLOAD the deck. Make changes as per the requirement. Yes, these PPT slides are completely customizable. Edit the colour, text and font size. Add or delete the content from the slide. And leave your audience awestruck with the professionally designed Post Merger Integration Framework And Challenges Power Point Presentation Slides complete deck.
Managing an asset management business is unique. Not only is it a professional service business but extraordinary portfolio management and sales talent is critical to the business. Balancing the business and the profession is essential.
Post Merger Integration Integrating It PowerPoint Presentation Slides SlideTeam
Merge two organizations into one successfully with content-ready Post Merger Integration Integrating IT PowerPoint Presentation Slides. Execute the process of combining two organizations into one with ease and clarity. Use ready-made post-merger integration PPT slideshow for a better acquisition. Merge assets, people, resources, tasks, IT, etc. using mergers and acquisitions PowerPoint templates. This complete business acquisition PowerPoint presentation deck comprises of templates such as role of IT in post-merger integration, synergies in IT integration, approaches to IT integration, IT integration framework, and post-merger IT planning, Incorporate these templates for a better execution of acquisitions of two businesses. This ready-to-use PowerPoint presentation deck is suitable for processes like program management, project management, change management, corporate finance, management due diligence and more. Incorporate the right synergies, build capabilities, shape the new culture with post-merger Mckinsey PPT templates. Make sure that the two teams are integrated in the best possible way and all the necessary steps have been taken using post-merger checklist. Make the complex process of combining and rearranging businesses easy with the help of post-merger integration IT PowerPoint presentation templates. Encourage acts that benefit everyone with our Post Merger Integration Integrating It PowerPoint Presentation Slides. Be able to do good for the community.
Ownership transition activity in the architecture and engineering (A/E) space is certainly on the upswing with the Baby Boomer generation looking to retire in increasing numbers. But, how ready are you for taking on the task of transitioning ownership of your firm? Have you primed the pump with a list of possible successors?
In Best Practices in Strategic Planning for A/E Firms, we begin by providing you with the results of a survey that PSMJ did with 75 firms on how they conduct strategic planning.
Next, we provide you with some information on what we have gleaned from the survey. We have mined the data to figure out what works and what doesn’t work in strategic planning.
Then, to help you conduct better strategic planning at your firm, we talk specifically about some things that we have learned over the many years we have been engaged in strategic planning with architecture and engineering firms.
We wrap up with some recommendations on best practices in strategic planning. Our goal is to provide new insight into how your firm can maximize your strategic planning efforts for success in 2016.
Request Talent Management Demo http://www.PeopleStreme.com
Know your people, find your people, keep your people. PeopleStreme's Talent Management Generation3 is innovative talent management software that enables organisations to successfully manage their talent, set up career development plans, improve the succession planning process and drive employee retention rather than respond to unexpected resignations.
Companies cannot afford any form of waste in
their businesses. Trimming the fat won’t help in
many cases. It’s not enough. Some businesses
will have to reorganize or reinvent themselves to
survive. Contact CGN for more information on this service offering.
is an SaaS based multi-level, innovative skills
assessment platform which helps an organization in pre-hire screening, Training, Certification Test and
Online Examination.
How the MRR Group Can Help Improve the Financial Management of Your SaaS Busi...Barry Jahansetan
The MRR Group offers a variety of Off-the-Shelf fixed priced packages as well as custom consulting services to help improve the financial management of SaaS start-ups.
Expanding credit lines article 1
For recovering companies, additional financing for working capital increases would be necessary, but increasingly difficult to come by at reasonable interest rates. During the recession, bank loan commitments were reduced, while mounting losses were financed by utilizing availability under the working capital line of credit. As the economy recovered, liquidity was much tighter while availability was lower. Companies did benefit from the fact that the recovery was slow and, therefore, rapid working capital requirements often associated with growth did not materialize. Ultimately, the recovery has led to companies needing expansion capital but finding it hard to come by. Many companies facing this exact situation have turned to MorrisAnderson to discuss ways to improve liquidity and availability for credit. The squeeze on expansion financing was particularly difficult for companies that had recently experienced poor results and earnings, but had turned the corner and were trying to expand. The issue for lenders, of course, is that, in order to accurately approve a company for expansion financing, they needed to gain a holistic look at the company's past performance and projections for future growth to understand both the benefits and risks involved in expanding credit lines. Starting in 2008 or 2009, financial institutions began consolidating and being much more stringent and selective in the expansion financing process - doing so because the demand for capital was plentiful, regulation was heightened, while the credit risk was increased. As a result, many lenders needed to determine - particularly with accuracy -whether a potential borrower was economically stable enough to have its lines of credit increased. Lenders have frequently turned to turnaround restructuring firms to help with distressed clients (from The Secured Lender's October 2009 issue, "Restructuring and workout consul
THE SECURED LENDER OCTOBER 2013 29
tants are still finding their hands full as lenders pull them in to help with troubled clients") but also for independent assessments on the ins and outs of a company's expansion plans and provide guidance on financing options.
Considerations for Expansion Financing: A Checklist It's essential to regularly assess a company's issues, opportunities and overall viability. When assessing expansion financing and lending options, consider the following checklist: > What are the company's specific expansion plans and projected timeline? I What are the financial projections? > What is the projected cash flow? I What are the capital expenditures and projected timing on return on investment? > When does the company expect to realize profitability? > Does the company have a solid base from which to expand? I Will the company be able to maintain a high level of quality products/services? t What resources are being dedicated to product and process improvement? > Will management be able to maintain control duri.
ExpandingCredit Lines inOrder to ExpandAssessing a Co.docxrhetttrevannion
Expanding
Credit Lines in
Order to Expand:
Assessing a Company's Viability for Expansion Financing
While at oiie poiiit it seemed like compa-
nies would never emerge from what has
been termed the Great Recession, they are
now not only emerging, but actually
growing and expanding. However,
one big issue from both the
borrower and the lender side
has been challenges related
to expansion financing.
By Steve Agran
For recovering companies, additional
financing for working capital increas-
es would be necessary, but increasing-
ly difficult to come by at reasonable
interest rates. During the recession,
bank loan commitments were re-
duced, while mounting losses were
financed by utilizing availability under
the working capital line of credit. As
the economy recovered, liquidity was
much tighter while availability was
lower. Companies did benefit from
the fact that the recovery was slow
and, therefore, rapid working capital
requirements often associated with
growth did not materialize. Ultimately,
the recovery has led to companies
needing expansion capital but finding
it hard to come by.
Many companies facing this exact
situation have turned to MorrisAnder-
son to discuss ways to improve liquid-
ity and availability for credit. The
squeeze on expansion financing was
particularly difficult for companies
that had recently experienced poor
results and earnings, but had turned
the corner and were trying to expand.
The issue for lenders, of course, is
that, in order to accurately approve
a company for expansion financing,
they needed to gain a holistic look at
the company's past performance and
projections for future growth to un-
derstand both the benefits and risks
involved in expanding credit lines.
Starting in 2008 or 2009, financial in-
stitutions began consolidating and be-
ing much more stringent and selective
in the expansion financing process
- doing so because the demand for
capital was plentiful, regulation was
heightened, while the credit risk was
increased. As a result, many lenders
needed to determine - particularly
with accuracy -whether a potential
borrower was economically stable
enough to have its lines of credit
increased.
Lenders have frequently turned
to turnaround restructuring firms to
help with distressed clients (from The
Secured Lender's October 2009 issue,
"Restructuring and workout consul-
THE SECURED LENDER OCTOBER 2013 29
tants are still finding their hands full
as lenders pull them in to help w i t h
troubled clients") but also for inde-
pendent assessments on the ins and
outs of a company's expansion plans
and provide guidance on financing
options.
Considerations for Expansion
Financing: A Checklist
It's essential to regularly assess a
company's issues, opportunities and
overall viability. When assessing
expansion financing and lending op-
tions, consider the following checklist:
> What are the company's specific
expansion plans and projected
timeline?
I What are the financial projections?
> What i.
During a business turnaround, the first thought is to dive into the financial condition of the business and immediately develop methodologies that improve cash flow and reduces expenses.
I submit that a deep dive into the fitness of the organization will reveal deep fissures in how the company is being managed; then study the leadership team, the business plan and the goals and objectives of the company.
The article “Organizational Fitness Improves Business Turnarounds and Revenue Growth” was developed for business owners and CEO’s that are the center of influence in their companies.
Guide for Executives in Working with Private EquityDavid Johnson
For many executives, the opportunity to work in a private equity backed company requires a mindset shift.
Understanding of both the unique management challenges and heightened expectations that come with managing a private equity backed company are crucial to success.
Isnt it funny how you take your core business for granted. Having pioneered the approach since 2006, the icebreaker executive approach to the governance, resourcing, ROI measurement and delivery of interim management is still streets ahead of the competition :)
On this basis whilst we don't search awards out or put ourselves forwards - maybe its no wonder our highly trained team win awards every year?
If you have an intransigent business challenge you are looking to permanently resolve and along the way transform your teams capability - do call. we'd would love to hear from you.
A summary of the approach is below
best Tom
tom.pickering@icebreakerexecutive.com
The onset of an economic downturn presents business leaders with the need to reorient themselves towards value creation levers other than revenue growth.
By executing a strategic pivot away from a growth orientation and toward these other drivers of value, business leaders have the opportunity to create substantial value and position themselves favorably regardless of the economic climate.
TRU Snacks Webinar Series - Determining the Right Path Forward When Restructu...Citrin Cooperman
The COVID-19 pandemic pushed many business owners into crisis management mode to identify the best way to pivot and ensure sustainability. During this TRU Snacks session, we will provide insight on how to determine the right path forward when restructuring a financially distressed company.
https://www.citrincooperman.com/infocus/tru-snacks-webinar-series
Opportunity-based Growth: How GrowthPath Drives Cash and ProfitTim Richardson
Opportunity-based Growth for small and medium sized businesses is the proven approach to prosper under economic and technological change. It's GrowthPath's speciality.
Organizational Fitness blends two passions of mind–leadership and fitness–and refers to the perpetual growth and productivity of a company, team, or organization based off the people that serve the company’s purpose. Having the wrong person in a critical job position is like trying to fit a square peg in a round hole–it may fit eventually, but the end result won’t be pretty.
A “fit” organization is one that is both willing and able to face new threats as they emerge based off the people that define its culture and the competencies such people have that create value for the organization.
This presentation will show you how organizational fitness can create value for businesses and help turn your business around for long-term sustainability.
Whitepaper. Is Your Business Trapped In Cash Flow Hell?Slimstock
Five ways to free working capital from your inventory
Whether selling a revolutionary product or essential service, the challenges of gaining access to the working capital necessary for production capacity expansion, marketing initiatives, or fluctuating inventory needs affect nearly all businesses.
In fact, more than two-thirds of business owners said they faced challenges growing their businesses over the past year, with more than 12% not understanding how to obtain the working capital necessary to facilitate expansion.1 With increasing frequency, business owners are turning to external funding sources to secure capital to fuel growth as opposed to exploiting the potential capital they have tied up in inventory.
SEA Founders Covid-19 Issues & SolutionsTeo Lee Hwee
In light of COVID-19 and the impact it has had on businesses, especially start-ups, members of SEA Founders initiated a huddle call on a Sunday morning over Zoom. With Anna Gong (Perx Technologies) and Suresh Shankar (Crayon Data) leading the discussion, 21 founders came together to discuss issues and solutions to help each other tide through this difficult time. We are sharing this to help the larger start-up community.
A hedge fund just bought 5 percent of your company. The fund partners clearly see value in what you’re doing, and, as a member of the management team, you take heart in that assessment. But you also know life is about to get more difficult. The fund partners are well-known activists. They have already asked for board seats. Now they’re proposing some dramatic strategic and financial changes, confidently assuring you and your shareholders that these moves will drive the company’s stock price higher. If you don’t comply and boost margins in a timely fashion, they will quickly bring in a management team that will.
For many company leaders, this is not a scary hypothetical — it is reality. It may also be an opportunity. In any case, activist shareholder campaigns are proliferating. According to the journal Activist Insight, 300 companies around the world were publicly targeted by activist investors between January and June 2015, about 25 percent more than in the same months the previous year. Since 2013, hedge fund managers have demanded change at hundreds of companies. The most widely publicized have included Apple, DuPont, General Motors, Microsoft, PepsiCo, Sony, Sotheby’s, and Yahoo.
One reason activism is growing is the rich rewards it earns for investors. On average, hedge funds with an activist approach have outperformed most other types of investment funds since 2010. The data analysis firm Hedge Fund Research reported recently that activist funds returned 12.5 percent a year between August 2012 and August 2015, while other funds, on average, earned returns in the single digits. No wonder investors increasingly demand activist funds in their portfolios, while the managers of those funds search diligently for new targets. No one can assume his or her company is immune.
We've distilled 10 principles for cost transformation that can help companies play the role of gadfly investor for themselves.
Similar to Radical Value Creation: Case Study of a Successful Middle Market Turnaround (20)
As experienced change agents seek to implement and lead a successful business transformation, many select as their top priority reorienting the thinking of leadership, staff, and key stakeholders towards value creation.
For small and midsized businesses looking to not only survive, but thrive in the post-COVID world, a focus on pricing strategy will pay considerable dividends.
Oilfield services operators face severe challenges. In order to ensure viability, executives and trusted advisors must assess their current situation and act decisively.
Many companies are being challenged by the paradigm shift sparked by the coronavirus pandemic.
Business leaders have an opportunity to steer their companies in a direction of superior value creation by embracing drivers of value other than growth for the duration of the crisis.
Restructuring for Small and Mid-Sized BusinsesesDavid Johnson
Many small and mid-sized businesses are struggling as a result of the current economic downturn. A firm grounding in the basics of restructuring can help business leaders and their advisors navigate an optimal path for every company.
Every company, regardless of size or technical acumen, has an opportunity to increase the sophistication with which it makes use of its own data.
By starting with existing management reports, companies can start down the path of moving from simple reporting to the generation of actionable, data-driven insights.
Toys R Us: From Dominance to BankruptcyDavid Johnson
Toys R Us was once a feared competitor, the top toy retailer in the U.S. with a seemingly unassailable lead as a "category killer" in the toy sector.
20 years later the company filed for bankruptcy due to the loss of vendor support in the months before the 2017 holiday season.
The decline of Toys R Us offers several lessons, foremost among them that no company, regardless of the strength of its position, can afford to be complacent in the face of shifting industry dynamics.
Change is constant, and the need for periodic renewal is one of the only certainties in business. Unfortunately, the best practices associated with successful change management initiatives are often poorly understood.
Aspiring change agents greatly increase their chances of success by considering the factors most likely to drive and enable organizational change and incorporating those factors in a comprehensive strategic change management initiative.
Breaking the Nonprofit Starvation CycleDavid Johnson
The greatest challenge facing nonprofit organizations is a scarcity mindset and the underinvestment that comes from it.
When checked at an early stage, the scarcity mindset is only a hindrance, but for too many nonprofits, it gives rise to a vicious cycle of short-termism that can threaten even the most storied organizations.
The bankruptcy filing of Pacific Sunwear illustrates the difficulties facing apparel retailers as shifting market dynamics challenge legacy business models.
As the hype around data analytics turns to disillusionment, now is the time for management teams to take a hard look at how best to utilize new capabilities to drive measurable improvement in their organizations.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
2. “If you want something new, you have to stop doing
something old”
‒ Peter Drucker
Abraxas Group
www.abraxasgp.com
2
3. • David Johnson is a career change agent who has served as interim
manager or financial advisor on over $5 Billion of distressed middle
market transactions.
• In his nearly 20 years as a change agent, David has served as an advisor,
board member, interim manager, investor and operator at
organizations ranging in size from pre-revenue startups to Fortune 500
organizations.
David Johnson
Abraxas Group
www.abraxasgp.com
3
Email: david@abraxasgp.com
Ph: 312-505-7238
Twitter: @TurnaroundDavid
5. Overview
• In the summer of 2015, a $160MM construction company was undergoing
an accounting restatement, placing the company in default of loan
covenants on $100MM of debt facilities.
• The company’s owner, a middle market private equity firm, appointed a
new CEO in July 2015 with a mandate to lead a turnaround of the
company.
• On July 31, David Johnson was retained to provide finance leadership in
the turnaround, and shortly thereafter was named Interim CFO.
Abraxas Group
www.abraxasgp.com
5
6. Company begins to miss financial targets, leadership fails to assess root
causes and the decline continues
Downward Spiral
Abraxas Group
www.abraxasgp.com
6
Leadership sets increasingly aggressive targets, focus is on a
single contract or quarter to turn things around
Decline becomes evident to outside
stakeholders
Lenders press for a fire sale
or liquidation process
Underperformance
Envelope Pushing
Severe Business
Erosion
Fire Sale /
Liquidation
Companies in distress tend to follow a similar pattern, the goal of any turnaround is to provide a sharp and
definitive break from the downward spiral
7. • The new leadership team had a
number of challenges to deal
with immediately:
– Capital structure (financial sponsor
and lenders highly uncertain)
– Toxic relationships with key
customers
– Communication breakdown with key
material suppliers and subcontractors
– Plummeting morale
Challenges
Abraxas Group
www.abraxasgp.com
7
8. NO MARGIN FOR ERROR
Abraxas Group
www.abraxasgp.com
8
9. Hit the Ground Running
• August and September saw the new leadership team absorbed in a
number of issues critical to the survival of the company:
– Lender Relationship. As a result of the company being in default of its loan covenants,
lenders were insisting on formalizing a Debt Amendment Agreement. Absent support
(even reluctant support) from lenders, the company would not be able to execute on a
turnaround plan.
– Mending Fences. Confidence in the company was low, both internally and externally.
Customers, vendors, and staff were confused, angry, and scared, sometimes all at once.
Leadership needed to get out with a new story for why the turnaround could work.
– Building a Team. Prior management had lost all credibility, and by July senior leadership
had been fired. The new leadership team was being assembled in real-time as the issues
facing the company continued to multiply.
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10. Lender Relationship
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Reporting Cadence Normal Course Workout
Quarterly Quarterly Covenant
Compliance and Borrowing
Base Certificate
N/A
Monthly Monthly financial results Covenant Compliance,
Borrowing Base Certificate,
Monthly financial results
Weekly N/A Rolling 13-week cash forecast,
weekly variance analysis,
general update
When a company is placed into workout by its lenders, the focus shifts from one of a collaborative
partnership focused on growth to one of risk management and downside protection.
This is a shift from “grow together” to “get out whole”.
Companies in workout should never lose sight of this change.
11. Customers
• Key customers were losing faith
in the company’s ability to
execute
• Revenue was down, litigation
expenses were up
• Customer complaints were not
being addressed
Vendors Staff
• Critical Material Suppliers and
Subcontractors were frightened
that the company would fail
• Vendors were accelerating
payment demands
• General managers were
overwhelmed
• Inside the company, formal
communication channels had
broken down
• A sense of fear and resignation
prevailed
• Rumors were everywhere, and
morale was falling
Mending Fences
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12. Building a Team
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Position New to Company? New to Role
CEO Yes Yes
COO No Yes
CFO (Interim) Yes Yes
Vice President, HR No Yes (role expanded)
Head of Sales No Yes
Corporate Controller No Yes
General Managers (7) No Yes
The company’s leadership was remade beginning with the appointment of a new CEO in July 2015.
The leadership team, composed largely of existing staff elevated to leadership, were energized to drive
the turnaround, and outperformed the expectations of all outside observers.
14. Now Prove It
• Entering Q4 (Oct – Dec), the company had addressed legacy issues, and
bought some time with lenders.
• Nonetheless, the factors weighing against the company were
considerable:
– Calendar. Q4 was going to be a make or break quarter for the company, but all were
aware that Q4 was traditionally the weakest quarter of the year.
– Stakeholders. Relationships were at a fragile point in October 2015, with many inside
and outside the company taking a “wait and see” approach to the turnaround.
– Liquidity. The company had a severely constrained liquidity position, and the
agreement negotiated with lenders had provided only modest relief.
– Potential Fire Sale. Lenders had insisted on the retention of an investment banking firm
to run a “dual track” (sale or refinance) process, with a deadline of a completed
transaction by June 15, 2016.
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15. • The company rapidly began
showing improvement in both
revenue and gross margins.
• Revenue growth. Core customers
reengaged after meeting with
new leadership, leading to strong
revenue increases.
• Gross margin expansion. A focus
on costs allowed the company to
execute “better, faster, cheaper”.
Performance Improvement
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128.4 126.1
139.3
114.2 109.9 110.3 106.1
112.8 108.0
Revenue Trends
Rev Baseline
148.7
164.6 166.6
176.9
154.7
138.2
150.5
140.2
179.9
Gross Margin Trends
GM % Baseline
(July 2015 = 100.0)
16. Customers
• Leadership focused on meeting
with key customers, to apologize
and reset expectations
• Workable releases increased, and
the turnaround became a growth
story
Vendors Staff
• Key vendors were contacted, and
payment plans were negotiated
where necessary
• As the company made good on
its commitments, vendor
relations quickly normalized
• Employees noted the common
sense changes and they quickly
bought in
• Sensible RIFs, clear
communication, and savvy
promotions signaled a break with
the status quo
Rebuilding Trust
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17. • It was immediately clear that a substantial improvement in cash
management would be necessary to fund the turnaround.
• Weekly cash reporting was initiated, and disbursement controls were
implemented.
• Absent these improvements, the company would have had insufficient
liquidity and a fire-sale would have been the only option.
Cash Management
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20. Special Projects
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Turnaround situations give rise to enormous
workloads on the accounting and finance function.
At this company, there was the added handicap of
a deficit of institutional knowledge (due to 100%
turnover in the corporate finance function).
Project Name
Debt Amendment Agreement Negotiations
Development, Implement and Oversee Cash Management
Support Working Capital Field Exam
Support Fixed Asset Field Exam
Sales & Use Tax Analysis
2015 Audit
Five Year Forecast
2016 Operating Budget
Flash / Three Month Forecast Revamp
Backlog Analysis
Insurance Renewal
Misc. Policies & Controls
Month-End Close Process Revamp
New Accounting System Rollout
Sale/Refinance Process
21. Support of the Business
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Function Points of Contact Nature of Support
Strategy CEO Strategic plan development,
change management
Capital Structure CEO, Financial Sponsor Scenario testing, forecasting
Operations COO Collections, vendor relations,
capex priorities
Sales Head of Sales Market intelligence, reporting
for licensing submissions
HR / Admin Vice President, HR Insurance submissions, IT
issues
In addition to managing the one-time items tied directly to the turnaround of the company, as Interim CFO
David also had considerable responsibilities for supporting the business during his tenure.
23. Testing a Hostile Market
• In January 2016, with the high-yield
market in the throes of a “risk off”
spasm, the company’s investment
banking firm contacted prospective
capital providers.
• By this point the company had logged
only one solid quarter of post-
turnaround performance (Q4), and
expectations were low.
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24. Dual-Track Process
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Through the diligence and
connections of a well-respected
investment banking firm, the
company was able to reach out to a
broad cross section of prospective
capital providers.
The benefit of this approach, in
addition to creating tension among
multiple bidders, was in speaking
with prospective investors with
widely divergent risk tolerances.
25. For the 9-month period Aug15
– Apr16, the company saw a
76.8% YoY increase in EBITDA.
With each month of
outperformance, the
company’s value increased.
Robust Profit Recovery
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EBITDA (Aug
14 – Apr 15)
Change in GM
($)
Change in
SG&A
All Other
Changes
EBITDA (Aug
15 – Apr 16)
100.0
45.5
6.6
24.7 176.8
Values Common-sized with Aug14 – Apr15 EBITDA = 100
26. Sale
• Offers recognized value created in the turnaround,
with substantial equity value for sponsor
• Immediate pay-off of lenders and realization of
investment gain for sponsor
• Validation of new leadership team’s
accomplishments
Refinance
• Offers allowed company to continue generating
value for current sponsor
• Successful exit for incumbent lenders and responsible
capital structure moving forward
• Opportunity for leadership team to continue to
execute on 5-year plan
Optionality
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27. The company was able to
refinance its entire capital
structure, and beat the June
15, 2016 maturity date by one
day.
New Capital Structure
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Sep15
Senior Debt
Jun16
Subordinated Debt
29. Keys to Turnaround Success
1) Runway. Diligent cash management allowed the company to fund normal
operations through an intensive sale/refinancing process.
2) Performance. For the 9-month period of Aug15 – Apr16 the company
saw the following YoY improvement:
– Sales: 9.8% increase
– Gross Margin ($): 20.1% increase
– SG&A: 5.1% decrease
– EBITDA: 76.8% increase
3) Team. A cohesive team, encompassing staff, new leadership, as well as
outside advisors, were able to work together, overcome constraints, and
in the end drive considerable value creation.
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30. Bottom Line
• In July of 2015, most of the lenders to the company would have been
happy to get out whole, implying no equity value for the company.
• In choosing the refinancing option, the company’s financial sponsor
turned down offers that implied a doubling of enterprise value (>$70MM
increase in equity value) over 11 months.
• Not only was radical value created, but all involved (new lenders, financial
sponsor, leadership) were in agreement that the company had become a
platform for further value creation in the years to come.
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