The New Restructuring Talent Needed

Seldom does a week go by that I am not talking to a C-level executive or two whom is trying to position himself, or herself, to take advantage of their experience in turning around troubled companies. The logic of their thinking seems, at first blush, to be sound. In this deep and extended downturn, a ton of companies are hurting. One would think that the constituencies would be eager to replace management of the hurting companies.

When one talks to executive recruiters, the candid ones will admit that companies are not switching out management at a rapid rate. In fact, many…if not most…recruiters are struggling, just like the economy.

Every troubled company situation is unique; but, a common pattern is that everyone in management has their “head down” and is working harder than ever in an effort to hold onto their jobs. At the same time, the constituents are often, themselves, in disarray and therefore not pressing for changes in management at the rate one would expect with so much distress.

Regular readers of this blog, and experienced Restructuring professionals, know that the most common "fix" today is sale of the good assets of a troubled company pursuant to Section 363 of the Bankruptcy Code. And, most often, the assets are being sold to a strategic buyer who can add the assets to an existing operating platform.

Now anyone who thinks that buying assets from a distressed company and instantly creating real value with those assets is a simple process is likely to be in for a rude awakening. Creating real value will require buying the right assets at the right price, integrating them quickly and efficiently, and then managing the resulting entity effectively at a time when business models are changing rapidly and the economy continues a downward slide.

What is needed is a new type of C-Level executive and/or consultant.

One who is skilled at integration, nimble, fast, and comfortable with the nuances of managing in a period of unprecedented uncertainty. And, one capable of being a part of creating the new business models needed in industry after industry.

This is a great time for C-level executives and/or consultants who understand how much the world has changed and position themselves for this new world order. For sure, many constituents do not yet understand or fully appreciate this shift in necessary C-level skills. Or have the wisdom and courage to demand a change in management. But, the good news is that week by week, there will be an awakening. And, the new breed of C-level executives will get their opportunity to demonstrate how they can create real value.

Only the real value creators need apply!