Reversing the Slide

A just-in-time guide for revamping distressed companies Drawn from the author's decades of experience advising, purchasing, and reviving distressed companies across industries, geographies, and sizes, Reversing the Slide is designed to help executives, managers, and employees revitalize downtrodden companies. It shows how to: select the tactics appropriate for each stage of distress; understand the use of entrepreneurial concepts; avoid pitfalls common to turnarounds; determine the legal, financial, strategic, and operational steps in the process; discover why the principal of "ready, fire, aim" should guide the decision-making process in situations with time pressure and significant uncertainty; and uncover the secrets of effective leadership and governance. Contains step-by-step instructions for helping troubled organizations bounce back with vigor Often quoted in the Wall Street Journal, the author is an authority on restructuring and downsizing Offers a handbook for implementing a successful corporate turnaround James Shein's Reversing the Slide is full of insightful advice on what works, what does not, and why it will prove invaluable to executives, managers, and employees in helping troubled companies before it's too late.

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