About the Book

CSTB cover 082806Crafting Solutions for Troubled Businesses will change the way you think about the problems of businesses in distress.  In this practical (and opinionated) guide to evaluating and addressing the challenges of overleveraged and underperforming companies, the authors provide practical advice regarding key tasks critical to understanding how to maximize the value of a troubled business, including:

  • Identifying the difference between bad management and a bad business;
  • Assessing risks and opportunities in order to diagnose turnaround potential;
  • Determining when replacement of management is required;
  • Negotiating consensus, support, and a path to mutual benefit among contentious and disillusioned constituents.

Based upon detailed analysis of 100 distressed situations on which they have worked, the authors identify patterns of problems and conclude that financially troubled companies can generally be segmented into one of the following classifications:

Undisciplined Racehorses: Growth businesses that often suffer from isolated and correctable strategic errors or operating deficiencies.

Overburdened Workhorses: Mature, viable businesses with an established market position that have been saddled with excessive debt-service obligations.

Aging Mules: Companies in decline, stubbornly clinging to strategies better suited for the past while being outpaced by nimbler, more flexible competitors.

Using these classifications as a conceptual framework, the authors offer extensive, fact-based problem diagnosis and solution tools, and show how to “separate the wheat from the chaff and maximize the value of each.”