Copyright
by William W. Sihler - Darden Graduate School of Business Administration University
Financial Turnarounds: Preserving Value
- Copyright
- Advisory Committee
- Foreword
- 1. Introduction
- 2. Executive Summary
- 3. Case-Study Summaries, Key Findings, and Early Warning Signs
- 4. Comparison of Financial Turnarounds
- 5. Comparison of Turnaround Methods
- 6. Preventive Medicine for Healthy Companies
- 7. Manufacturing Sector
- Maytag Corporation
- Navistar International Corporation
- Background
- Causes of Financial Difficulty
- The Company Turnaround
- Financial Restructuring
- First Restructuring
- Second Restructuring
- Third Restructuring
- Fourth Restructuring
- To File or Not to File
- Cost Reduction and Divestitures
- Rebuilding the Company
- Health Care Buydown
- Next-Generation Vehicle Program
- Working with the Union
- Other Recent Initiatives
- Market Share
- Cash Reserves
- Financial Performance Measures
- Incentive Compensation
- Capital Structure
- Culture Change
- Role of the Finance Function
- Key Findings
- USG Corporation
- Background
- Causes of Financial Difficulty
- The Company Turnaround
- Restructuring Plan
- Prepackaged Bankruptcy
- Threat of Bankruptcy
- Changing Players
- Most Influential Investors
- Fulcrum Security
- Bank Debt
- Equity Allocation
- Junior Subordinated: The Free Rider
- Venue Selection
- Sharing the Pain
- Management During the Restructuring Period
- Incentive to Maximize Enterprise Value
- Professional Services
- Emergence from Bankruptcy
- New Goals after Bankruptcy
- Plan to Achieve Investment Grade
- Improvement in Performance
- Amortization of Fresh Start Charge
- Refocused Business Strategy
- Recent Priorities
- Corporate Valuation
- Cultural Changes
- Key Findings
- Forstmann & Company
- Background
- Business Characteristics
- The Manufacturing Process
- Causes of Financial Difficulty
- The Company Turnaround
- Communication with Stakeholders
- Cash-Flow Management
- Management Reorganization
- Business Strategy Development
- Cost Analysis
- Product Rationalization
- Inventory Management
- Customer Service
- Quality Control
- Overhead Reduction
- Key Performance Indicators
- Financing and Capital Structure
- Financial Reorganization Plan
- Second Bankruptcy Filing
- Key Findings
- Pepsi-Cola Bottling Company of Charlotte, N.C.
- Sampson Paint Company
- 8. Retailing Sector
- Ames Department Stores, Inc.
- Jos. A. Bank Clothiers, Inc.
- Edison Brothers
- Background
- Bankruptcy Filing
- Corporate and Liability Structure
- Creditors’ Committee
- Import Letters of Credit
- Debtor-in-Possession Financing
- Reclamation Program
- Store Closings
- Board of Directors
- Exclusivity
- Claims Trading
- Equity Committee
- Reorganization Plan
- Dave & Buster’s Spin-Off
- Reexamination of the Business
- Information Systems
- New Management
- Second Bankruptcy Filing
- Key Findings
- Background
- The Forzani Group, Ltd.
- Background
- Causes of Financial Difficulty
- The Company Turnaround
- New Top Management
- Structural Issues
- Cash-Flow Management
- Inventory and Product Mix
- Selling, General, and Administrative Expenses
- The Board’s Role
- Cooperation from Key Constituents
- Reengineering the Merchandise Mix
- Reengineering the Stores
- Employees: Store Level
- Consolidating Banners
- Key Performance Indicators
- Information Systems
- Equity Infusion
- Capital Structure and Dividends
- Acquisitions and Investments
- Most Helpful Parties
- Conflicts Between Shareholders and Management
- Taxation
- Corporate Valuation
- Reasons Not to File for Court Protection
- Key Findings
- Musicland Stores Corporation
- Red Rooster Auto Stores
- 9. High-Technology Sector
- Parametric Technology Corporation and Computervision
- GenRad, Inc.
- Background
- Causes of Financial Difficulty
- The Company Turnaround
- Financial Targets
- Changes in the Board of Directors and Management
- Sale of Real Estate
- Identification of Core Businesses
- Skunkworks
- New Business Paradigm
- Customer Relationships
- Market Share
- Approval of Capital Expenditures
- Reorganizing to Realize the Vision
- Enterprise Resource Planning Software
- Management Style and Corporate Culture
- The Role of the CFO
- Capital Structure
- Financial Performance Measures
- Taxes
- Key Findings
- Kollmorgen Corporation
- 10. Real-Estate Sector
- 11. Service Sector
- A. Annotated Bibliography
- B. Glossary
- C. Turnaround Specialists Interviewed
- D. Epilogue
- About The Authors
- Acknowledgments
Editorial/Production Supervision: KATHLEEN M. CARENExecutive Editor: JIM BOYDMarketing Manager: BRYAN GAMBRELManufacturing Manager: MAURA ZALDIVARCover Design: NINA SCUDERI©2002 Financial Executives Research Foundation, Inc.Published by Financial Times/Prentice Hall PTRPearson Education, Inc.Upper Saddle River, NJ 07458
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