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MONDAY JULY 14
On Things Insolvent Do you ever have one of those days? When you feel like you might just default at any moment? Some tips on what to do. July 2008That Time I Hired The Restucturing Consultant To Restructure Me by Johnny Debacle Do you ever have one of those days? When you feel like you might just default at any second? It could be spurred on by a liquidity crisis like Ford took away your factoring, has contractual price downs that are killing your margins and is ordering less volume to boot, and your revolver is maxed out and good luck raising any more money in this market; suffice to say you’re regretting your decision to be a consolidator in the auto supplier space. Or it could be a liquidity crisis where you had one too many jaeger bombs and the smell of your toilet indicates you may have also had too much tequila, but you have no memory of having ANY tequila. Either way, you could default at any second and you don’t like where things are headed. That is when you need to restructure and find yourself a personal CRO. What can he strip out? What can he improve? You spend your weeknights doing what? Why don’t use lean manufacturing while performing your job? You should consolidate your suppliers. And lose that contract with that girl, you know the one, she negotiated terms at the top of the market and you find yourself spending significant capex to maintain your supply and she is putting out little in the way of compensation. I found myself at this point, on the veritable verge and I needed outside help. Luckily, Long or Short Capital has a very generous and unique health package that allows its employees to be extremely healthy and notably more efficient. You think the firm with the SAAP based financial results doesn’t have generous fringe benefits? Come on! I have just brought my CRO in (pictured above) so he is busy getting dug in and up to speed on me. I will update as he begins producing actionable recommendations.
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