The Turnaround Assessment Test

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In 1968, Edward I. Altman formulated a simple, path-breaking scoring mechanism that could predict, with high confidence, the probability that any one corporation would enter bankruptcy within two years. He called the mechanism the Z score and, by publishing in academic journals, allowed it to enter the public domain. It has been, for many years, one of the most-studied […]

The Five Rules of Workout

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Because last year’s recession caused such a sudden depression in demand, some middle-market businesses have seen revenue declines of as much as 30-35%. Many of these businesses are still losing money and are close to exhausting their financial reserves. These companies’ banks are receiving the end-of-year financial reports and deciding whether the results meet contractual […]

Save Fritz Henderson!

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Well, perhaps not literally. An alternate title could be “Save GM from Itself.” But General Motors itself is not news, of course, and that title would miss the lovely phrase “Fritz Henderson.” The guy may be out of a job now, but he can almost certainly find employment if there is ever an opening for […]

Can troubled companies “grow out” of their cash flow problems?

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  When I meet managers of companies who have been having problems with the bank—as in, “we-want-our-money-back-now” problems—often the CEO will take me aside and confide that the real problem is that the bank “distraction” is preventing the company from executing the firm’s long-contemplated growth strategy.   The CEO has a geographic expansion in mind, or […]

Take the Temporary Tag Challenge

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So is it possible to turn around a car dealership? No one is buying cars now, are they? If no one is buying cars, how can a dealership survive? I suggest you take the challenge I’ve laid down to others: while you are driving in your own vehicle, look for signs of newly-sold cars. In […]

How to Turn Around a Car Dealership

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Steve Niswander is a remarkable guy:  young, excited about ideas and, in addition to being a great thinker, a doer.  He does things differently, and he gets things done.  And he has chosen a curious field to operate in.  Steve is a car dealer.  A successful one.  (Note that this is being written as the heads […]