Top 12 Outstanding Turnaround Management Firms for 1995
SMP Among the Best! AGAIN!
Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
SMP Library

Strategic Management Partners Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
A nationally recognized turnaround management firm
specializing in interim executive leadership, asset recovery,
and investing in underperforming troubled companies.

Article   SMP Library   SMP Home   Contact SMP

Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
Top 12 Outstanding Turnaround Management Firms for 1995
SMP Among the Best! AGAIN!
By Debra Brennan, t & w Staff Writer
turnaround & workouts magazine , 1995.
Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine
SMP Selection
t & w went on to say . . .
SMP Raises $80 million
Article Text
Top 12 Outstanding Firm in 1993
Outstanding Firms 'Hall of Fame'

Sections     Index

Strategic Management Partners Among the Best! AGAIN!

Top 12 Turnaround Management Firms
1995 Proved To Be Busy Year

by Debra Brennan

While it is always difficult to narrow down a list of top turnaround management firms to just 12, this year's choices were particularly competitive. The turnaround management industry has become increasingly professional and the results of many turnaround situations have been particularly successful. Also, there are many creative business and financial plans being implemented and of course there has been no shortage of needy turnaround opportunities.

While some large firms such as Jay Alix & Associates, Glass & Associates, Nachman Hays Associates have maintained their successes and built on strengths from previous years, and therefore remain on our list, we have some additions to the list with some interesting and novel turnaround management expertise.

Chrysalis Management Group was financial advisor to GE Capital, holder of $800 million in debt from the Broadway Stores, Inc., a retailer with more than 80 stores throughout the southwestern states. The engagement concluded with the successful purchase of Broadway Stores by Federated Department Stores.

Sections     Index

John Collard, chairman of Strategic Management Partners, Inc., while operating a small independent company, has been lending his unique expertise to The World Bank and EBRD, and has made a novel contribution to the industry by impacting turnaround management education and consulting in Central Europe and the Russian Federation. Additionally, he is a special advisor to and co-manager of Slovene Special Restructuring Programme, an $80M equity privatization fund that he helped raise. He plans to expand his practice by raising a turnaround venture capital fund in the U.S.

Representing a group of secured lenders, Nightingale & Associates analyzed causes of fleet failure of Adriatic Holding Corp LTC/Adriatic Tanker Corp., the largest (100 ship) fleet failure in shipping history.

Allomet Partners, with new offices in Cleveland, Ohio, Richmond, Virginia, and Chattanooga, Tennessee, has increased its senior staff by 60 percent. Allomet successfully analyzed the operation of a $20 million composite specialties producer.

Brincko Associates, Inc. continued and completed the successful turnaround and cash flow improvement of Sun World International, and John Brincko has been hired recently to aid Barney's in its new restructuring efforts.

William A. Brandt of Development Specialists, Inc. continues to be involved in more "cutting edge" reorganizations, and members of his firm continue to be at the forefront of the bankruptcy reform debate. In addition to its work for Southeast Banking, Pittsburgh Food and Beverage, HomeFed this firm is also committed to a strong participation in academic seminars.

Jay Alix Associates remains the strongest industry leader with 9 new professionals, and professionals serving as CEO, COO or CFO in 7 simultaneous engagements. Larry Ramaekers was named president of Color Tile, lending new credibility to a retailer which had lost industry and financial support.

While these Top 12 turnaround firms have caught our eye for a variety of reasons, including their accomplishments, there were many worthy firms we considered, and we look forward to another year full of inspired turnaround management, driven by these forceful personalities.

t&w went on to say . . .

Sections     Index

More than 200 turnaround management and consulting firms were considered during the selection process about work completed in 1995. t&w created a short list of firms they considered outstanding in their achievements. We weren't only interested in the established or larger firms, instead we wanted to emphasize superlative work and diverse accomplishments in the industry. t&w's criteria included: achievement; growth; work in special situations; entry into new markets; and international expansion.

Strategic Management Partners is a transition management firm specializing in valuation enhancement, corporate renewal, strategic repositioning, and equity investing. Collard sees this move as a first of perhaps many that will advise investors both in the US and overseas on the successful entry into new markets. "Turnaround Management is a popular phenomenon and there is a formula to success. When you provide a quality management team; a viable product with market definition to meet a customer need and a penetration strategy that makes sense, the investment will come," said Collard.

Several strengths and abilities lead to this win according to Collard. This team of professionals are leading experts in the fields of hands-on turnaround management [Certified Turnaround Professionals]; managing troubled portfolios that returned multiples of 3x in distressed situations; acquisition, merger, divestiture experience (totaling 80 transactions, $1.2 Billion value, and recovering $200M Assets); and unique experience with successful conversion of US contractors who wanted to convert to commercial and international markets.

Collard went on to say, "Turnaround problems in this part of the world are much different than we normally think of. We teach professionals how to be managers and how to market. In Russia, the ultimate demand economy for the last fifty years, managers have not had to use, nor have they been taught either skill. Teaching them is one answer, but the process will take time. "

"The concept of value is quite different. Valuation using 'liquidation' or 'net asset' concepts is assigned to assets. In a demand economy, inflationary accounting writes up assets to increase collateral for additional funding, value on the books is usually overstated. Business people are schooled in DCF and other methods of applying value. What most miss completely; however, is the concept of 'operating assets value', [the ability of the company to produce profits and cash flow]. There is little application of the concept of producing value for what investors or buyers are willing to pay," Collard said. This will change as time passes, stock exchanges mature, and transactions become more prevalent in the region. Until then, negotiations will be difficult.

t&w asked what's next? Collard said, "We are raising a fund to invest in equity situations where we take control. There is supply of capital looking for quality deals. We can bring caliber management to make a difference and maximize returns."

Turnarounds and Investing in Slovenia and Russia

Strategic Management Partners Raises $80M Fund, Lends Expertise

by Debra Brennan

Sections     Index

John Collard of Strategic Management Partners, Inc., teamed with the Hiram L. Pettyjohn Company to provide services in the Central European market, in addition to activities in the U.S. The purpose of the joint venture is to advise investors on transactions, raise a fund to provide capital to invest in turnaround situations, provide turnaround management expertise to troubled or nonprivatized companies, and to advise governments, company leaders, and fund managers on privatization and successful turnaround activities.

The venture bid and won the Slovene Special Restructuring Programme, which includes managing an asset management fund totaling $80 million, and management of unsuccessful privatization and turn-around efforts. This venture is in essence an industrial holding company that will invest in companies, serve on their boards, provide critical direction and exit strategies, and sell the revived companies.

Slovenia is part of the former Yugoslavia, and prior to Yugoslavia breaking up it had eight percent of the population and 30 percent of the GNP. This program is sponsored by the Slovenian Government, banks in Slovenia with troubled portfolios, and the European Bank for Reconstruction and Development (EBRD). The goal is to maximize the value of these investments by injecting capital, management, marketing and strategic expertise into the enterprise, and generating return of the principal plus capital gain to the Slovene government, banks, investors, EBRD, the equity holders and stakeholders upon the sale of these enterprises.

Negotiation of the contract is complete and the project is underway. Collard's unique experience with successful conversions of contractors who have been providing services and products to the U.S. government and have converted to commercial and international markets led to his ability to undertake this project. Many of the companies in Central Europe were once defense-based factories that now need to convert to peacetime markets. According to Collard, "Managing the resources to achieve successful turnaround was most important to the win."

Collard also entered into a contract with The World Bank to advise on privatization and turnaround activities and to develop a course to train turnaround, bankruptcy and privatization professionals and government officials in the Russian Federation and Central Europe. The course brings an understanding of western turnaround management and equity investing techniques to managers who have not had to deal with these issues before. The course was given in Moscow, and is scheduled to be given in 8 to
10 locations throughout the Russian Federation and former Soviet Union.

Collard spent four days fact-finding in Moscow visiting with the heads of the Bankruptcy Agency, the Agency for Privatization, multiple local Big Six offices with practices in the region, and several troubled enterprises.

"What an awakening. We found that the bankruptcy laws have no teeth, they are rarely enforced. Besides, many laws in this part of the world change from year to year, or can be interpreted as the local officials see fit," said Collard. "Because the equity holders (often the banks or government having major shares) are responsible for the debts, managers have little or no responsibility for their actions. They can do what they like, are often not held accountable and cannot (or with much difficulty) be replaced. It is a tough situation to enter a turnaround when a fundamental of our western strategy is to build, or replace if required, a qualified and responsible management team to carry out the turnaround. Everyone is willing to talk about change, yet they indicate that they can only change if the law allows it so."

Reprinted with permission. Turnaround & Workouts magazine 1995. Copyright 1995, Strategic Management Partners, Inc.

Sections     Index

We welcome constructive inquires. More information is available if required.

There is more to Strategic Management Partner's Return to Home Page

Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine

Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine   Contact Information


John M. Collard, Chairman
Strategic Management Partners, Inc.
522 Horn Point Drive
Annapolis, Maryland [MD] 21403
Voice 410-263-9100 Facsimile 410-263-6094 E-Mail

We serve as experts for comment or quote, please contact us at 410-263-9100 Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine

We welcome constructive inquires, please send via E-Mail to:   Strategist. Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine

Top 12 Outstanding Turnaround Management Firms, Turnarounds & Workouts Magazine

Top   Index   Sections   Contact
SMP Library

Copyright © 1995-2008 Strategic Management Partners, Inc. turnaround management and investing, Strategic Management Partners, Inc., tsigetarts