Renaissance Partners, L.C.

·         Management in denial – hope business will improve, cannot admit failure

·         Me-too Boards (support CEO, contribute little of substance and often not asked)

·         Illusionary reporting – not focused on right, actionable numbers, limited or no focus on cash flow and the future

·         Too much debt, limited disclosure of debt service needs in context of cash flow and liquidation value of assets

·         Assumption that landlord or government paid capex is free money – in fact it gets paid back through higher overhead. “Free-money” is too-often the vehicle for growth as distressed businesses attempt to grow and spend their way out of trouble

·         Lack cash flow management on daily, weekly, rolling 13 week basis

·         Lack detailed business/financial plan scenarios and tracking to worst-case scenario

·         Do not get and stay lean while being mean (must focus on top line too, the customer and technology to build loyalty and brand)

·         Fail to use outside, objective, unbiased, independent business assessment and appraisal services and also to vet plans

·         Communication – must listen to associates, customers, vendors, competitors and communicate openly and objectively with key management and associates

·         Talent – must attract and retain best affordable talent and people that take action and not just “say yes”

·         Management must be willing to put skin in the game take whatever actions are required for survival

 

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