Valuing a company is the easy part; creating that value in the first place so you can measure it is a more formidable task. Determining value is more art form than science. True value can only be established at the time of a transaction, where willing buyer tenders payment and willing seller accepts it in exchange.

Investing in under-performers has become a more acceptable practice. It can be very profitable if you know what to look for and how to execute, as many buyout firms and investors are finding out. You must:
•ascertain if a company is turnable;
•know how to fix the problems;
•avoid spending money on past-sins;
•obtain at the right price;
•manage the turnaround; and
•sell at increased value.

The Tao was written twenty-five hundred years ago by a man named Lao-Tzu who wrote 81 verses that many believe to be the ultimate commentary on the nature of our existence. The basic text of these verses is called the “Tao Te Ching” or “The Great Way.” I don’t know if it is the ultimate commentary on our existence, but I do know that the essential principals of great leadership do not change as witnessed below by what was written in the Tao. The great scientist, inventor and artist, Leonardo da Vinci was a student of the Tao and like him we can all take heed to what has been written so long ago about great leadership. It is the 17th verse of the Tao, which addresses leadership:

I started working with Bob Jordan (co-founder of the Association of Interim Executives and interim extraordinaire) a few years back when he was launching the first network for interim executives. I came on board even though at the time I hadn’t heard of an interim, and was probably with the majority of the population envisioning a temporary fill-in until the real executive showed up. Oh how wrong I was.

The next few years were spent talking to hundreds of executives from around the world. Though I did not yet have the business background to fully grasp the successes and war stories that each executive shared with me it became clear that two words summed up what interim management meant: execution and results.

Many business owners/CEO’s unfortunately don’t spot the signs that led to their company being on the verge of insolvency, or bankruptcy. So what are the signs that your company may be in distress?

• Strained financial resources
• demoralized senior management
• fearful employees
• unhappy customers
• tense bankers
• angry investors
• competitors waiting to pounce