Reversing the Slide: A Strategic Guide to Turnarounds and Corporate Renewal

Introduction: Conditions and Causes of Distress ix

Box 1: Typical Covenants Tripped by Downturns xxviii

1 The Phases of Decline and Early Warning Signs 1

Box 2: The Effects of Financial Shenanigans 17

2 The Turnaround Tripod 29

3 Leadership in a Crisis 58

Box 3: Governance and Leadership Issues in Family-Owned Businesses 80

4 Cash Not GAAP 93

5 Downsizing Is a Tool, Not a Goal 121

Box 4: Other Legal Issues in Announcing Layoffs 130

6 The Bankruptcy Process as Sword and Shield 152

Box 5: State Laws 156

Box 6: DIP Financing 159

Box 7: Committee Formation 162

Box 8: Plan Confirmation 181

7 Managing International Turnarounds 203

8 Turnarounds at (Intentionally) Nonprofit Organizations 231

Box 9: Chapter 9 Bankruptcy 257

9 Turning Duds into Dreams 259

Box 10: Additional Issues in Valuing Distressed Companies 278

Box 11: Fiduciary Duties of Directors in M&A Transactions 300

10 A Different Fresh Start 306

Notes 313

Acknowledgments 325

About the Author 327

Index 329