Common Blunders in Corporate Crises: How to Weatherthe Perfect Storm Practically

Abstract

Crises come on strong, and history tells us that few middle market companies are prepared for stormy seas. So, before the onslaught of a crisis, how can investors and advisors help management with battle planning and advance staging for either a turnaround or restructuring? Successful hands-on execution, especially in a crisis, is both an art and a science. Establishing command and control in a crisis requires much more than unlocking and preserving cash; it requires a unique battle-hardened skill set not typically developed during the course of a regular management career. Most general managers do not operate in venues depleted of capital, talent, reputation, and morale and are incongruous with the grit and grind of running a distressed company. The authors review common blunders in corporate crises and present indispensable lessons gleaned from corporate trench combat. <b>TOPICS:</b>Private equity, manager selection, financial crises and financial market history, performance measurement