We had been negotiating an investment in a company. It was a turnaround opportunity. The negotiations accelerated when the bankers called all the loans. We advanced some money and took control of the board.
Our days consisted of meetings to deal with one crisis after another. The first two weeks were a whirlwind. Fourteen 12-hour days. Of course, the bank needed comfort. The banker moved in with a monitor for the books and records at our expense and with our consent. The tax department had to be managed.
Employees calmed down; the leasing companies were given some money to bring them more current.
The third and fourth week consisted of assuring customers that we could survive and dealing with the Tax Department.
By the fifth week, the new CFO was giving us regular reports. He presented his first cash flow forecast that showed how we could move the company forward. The COO laid out his plans for closing down some money-losing operations.
Each meeting, the yelling and shouting died down and the business felt more and more regular. Each week, we were transitioning from fixing the past to focusing on the present.
In about week six, the VP Marketing presented a marketing strategy for a new product line. It was a good plan and we could see advancing more capital into the company to make it work. The banker allowed us time to try it out.
We had transitioned from fixing the past to focusing on the present, and now we were talking about growth in the future.
That is the nature of investing in turnaround situations.
It is also the nature of sobering up.
First, the crisis period. There is a lot of yelling and shouting and general panic. Then slowly, the fires are put out.
Next, we focus on the present. With inventories, we identify defects and begin to have them removed by our Higher Power.
Then one day, we look to the future. We realize that our desires have come into alignment with our Higher Power. We realize that we have a desire to improve our characters and grow spiritually.
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