November 12, 2024

Anatomy of a Business Turnaround: A Master Class with Paul Fioravanti

Anatomy of a Business Turnaround: A Master Class with Paul Fioravanti

Paul Fioravanti is a veteran interim executive. He is a turnaround expert who has been in some 90 engagements across 40 industries — as a CEO, COO, CTO (Chief Transformation Officer, CRO (Chief Restructuring Officer), General Manager or President.

So he knows a thing or two about how to get things done.

In our most recent Master Class video, InterimExecs CEO Robert Jordan talks with Fioravanti about his turnaround process and, in particular, his experience turning around Avara Pharmaceuticals.

Avara is a private equity-backed Big Pharma rollup that posted a loss of $45,000 and faced an imminent cash crisis and looming insolvency before Fioravanti came in as interim Chief Executive Officer. Thirteen months later, the company was $32 million positive and had achieved financial stability.

Here’s how he did it.

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May 22, 2024

Resolving Conflict on the Management Team: Why it Starts and How to Fix It

Resolving Conflict on the Management Team: Why it Starts and How to Fix It

Not long ago, InterimExecs was approached by a human resources professional who was concerned about the level of conflict among the members of the management team. The clashes had reached a point where they were, she said, ready to kill one another.

That got us thinking: Is conflict simply the nature of the beast these days?

Turns out the answer is no, according to Alicia Fortinberry and Bob Murray. Their company, Fortinberry Murray, is “committed to arming people and businesses with the knowledge and practical skills to build the organizations, communities, families and relationships that are compatible with our ‘design specs’ and enable people to be healthy and fulfilled.”

InterimExecs CEO Robert Jordan sat down with the duo to talk about conflict on management teams and how to handle it. This is an edited transcript of their conversation.

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March 26, 2024

The Six Times PE Funds Use Interim Executives

The Six Times PE Funds Use Interim Executives

Many private equity funds hear the words “interim executive” and think the only application is an Interim CEO or CFO for turnaround or short-term fill-in of a portfolio company. But PE funds seeking a great return look to interims for their unique abilities to build and transform companies.

An Interim CEO brought on to lead a recently acquired private equity portfolio company, for example, may match the hold period of the fund. That could mean several years of working to build, grow, and ultimately exit the company, hitting big returns for everyone involved.

Here are six major use cases for an Interim CEO, Interim CFO, or other interim executive in PE-backed portfolio companies:

1. Interim Executives in Diligence

Most funds hope to spread their wings and work beyond industries where they’ve already had success. In looking at new industries where acquisitions may cost less and produce higher returns, a little more diligence is often needed. The further afield a fund goes, the more they need expert leadership removed from prior operating teams.

We recently matched a $5B+ fund with an Interim CEO expert in e-commerce and consumer goods to help determine if a potential acquisition made sense. While the fund had deep experience in the manufacturing space, understanding the current challenges and opportunities to expand go-to-market strategy was essential. Once the deal closed, the executive transitioned into an ongoing advisor role to ensure the acquisition would be a success.

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January 18, 2023

How a Turnaround Now Can Help You Avoid Business Bankruptcy Later

How a Turnaround Now Can Help You Avoid Business Bankruptcy Later

First, the good news: Corporate bankruptcies in 2022 have been running below average. Now, the bad: That is about to change. Big time.

Government stimulus, post-pandemic demand, and historically low interest rates combined to give companies the edge during the first half of 2022. Organizations that survived the pandemic shutdowns thrived as the world recovered.

In fact, Cornerstone Research, which tracks business bankruptcy trends in Chapter 7 and Chapter 11 bankruptcy filings by companies with assets of $100 million or more, says in its midyear 2022 update report that there were only 20 bankruptcies filed by companies with $100 million plus in asset during the first six months of the year. It’s the lowest midyear total since the second half of 2014.

But the US Federal Reserve is waging war on inflation with historically fast increases in interest rates – more than 3 percentage points in just six months. That, coupled with the threat of a global economic recession, is spelling trouble for highly leveraged companies and underperforming firms.

We asked two turnaround specialists to walk us through the highly charged bankruptcy landscape as 2023 looms.

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June 15, 2022
John Collard

Five Stages to Managing Successful Turnarounds

John Collard | CEO, COO, Turnaround

The process of turning around a troubled entity is complex, due to multiple key stakeholders, usually including lenders, creditors, investors, owners and employees. All have different agendas.

In my work, I address the turnaround process as if all constituents are in favor of proceeding to the end, when a restructured entity emerges. Nothing about a turnaround is simple, but that approach at least clarifies the forward movement.

Above all, focus on the management team. Businesses fail because of mismanagement. According to a study conducted by the Association of Insolvency and Restructuring Advisors, only 9 percent of failures are due to influences beyond management’s control.

Mismanagement is most often seen in more than one of these multiple areas:

  •  autocratic style
  •  ineffective personnel management
  •  vague goals
  •  lack of new customers
  •  inadequate strategic analysis
  •  mismanaged growth.

So, as Will Rogers said, “If you find yourself in a hole, stop digging.”

That’s good advice for business owners and the senior management responsible for leading a company.

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April 22, 2020

The COVID Battle on the Manufacturing Floor & The Future of Our Global Supply Chain

The COVID Battle on the Manufacturing Floor & The Future of Our Global Supply Chain

The reach of coronavirus in the manufacturing sector has been vast. A survey by the National Association of Manufacturers revealed that 78% of manufacturers anticipate a financial impact, 53% foresee a change in operations, and 36% are experiencing disruptions in their supply chains. The Federal Reserve reported that in March production fell 6.3% in the manufacturing sector – the largest drop since 1946. This has everyone asking what the short and long-term impacts look like as major economies around the world seemingly come to a halt to curb the spread of the virus.

Manufacturers everywhere are running into cancellation of exports, delayed payments, and disruptions in logistics. Economist Larry Hu told Bloomberg “The worst is yet to come for exports and supply chain. For the whole year, China’s exports could easily fall 10% or probably more.” Meanwhile the world is grappling with how to deal with supply chain break downs and inventory shortages of critical medical equipment. The US government reportedly has almost depleted it’s emergency stockpile of masks, respirators, gloves, and gowns.

Still — essential companies such as ones producing food, medical supplies, or supporting necessary infrastructure and distribution of supplies are up and running. Leaders of these companies face a whole new realm of challenges as the health of workers and creating and maintaining a safe environment become top concerns.

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March 25, 2020

RED Team Executives: On Call to Help Now

RED Team Executives: On Call to Help Now

Uncertainty is growing in the US with coronavirus cases mounting. California, Illinois, Michigan, and other states have taken serious actions with shelter-in-place orders, leaving many people wondering how this will impact them personally as well as their companies and the economy as a whole.

At the same time, we’re reflecting on how much there is to be grateful for, including the strong relationships we’ve built over 10+ years with inspiring leaders. These are women and men who focus their careers on running into the burning building – the company in trouble – learning fast, listening, assembling resources, providing fresh and objective insights, developing new plans and actions for survival and ultimately blueprints for a brighter future.

We recently convened a call with some RED Team execs who shared how they are adapting to new ways to work. Many executives shared experiences on the front lines figuring out how to help combat the virus and also help people work smarter and safer:

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March 25, 2020
Philip Schiavoni

Surviving Zero Revenue: Thoughts from a Turnaround CEO

Philip Schiavoni | InterimExecs RED Team
Surviving Zero Revenue: Thoughts from a Turnaround CEO

Surviving a period of zero or near zero revenue is extraordinarily difficult. The fundamental challenge is how to use time and capital purposefully. Most businesses have multiple constituents with diverse and conflicting interests. There is no one correct course of action. What is beneficial to one constituent is likely to be harmful to another.

Consider the following: The shareholders, owners and founders of a business have invested their own capital, have taken risk and have worked hard to create equity value. These owners could be individuals, institutional investors, private equity groups and hedge funds or could be a publicly owned company. They could be US citizens or foreign entities. Should the protection and retention of owner and shareholder value be the primary and controlling objective?

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November 6, 2019

V.U.C.A. Helps Companies Deal with Dynamic, Shifting and Challenging Situations

V.U.C.A. Helps Companies Deal with Dynamic, Shifting and Challenging Situations

Our world, our universe is characterized by constant change. Stars are born and die, storms transform the landscape, nations rise and fall, people change over time. In the business world economies grow and collapse, business models evolve, industries transform and even the Top 100 list of leading companies completely changes in a matter of a few years.

But sometimes the speed and scope of change is extremely rapid, its consequences unforeseeable and unpredictable. This makes planning and decision making highly risky because it is so difficult to see what the future holds. “Everybody has a plan,” said championship boxer Mike Tyson, “until they get punched in the face.”

To help explain the often sudden, fluid, rapidly evolving and dynamic forces of change – that “punch in the face” — the U.S. Army War College created the term V.U.C.A. to describe and ultimately deal with highly dynamic, shifting and challenging situations.

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July 23, 2018
Olivia Wagner

Signs Your Struggling Business Needs Help

Olivia Wagner | President, InterimExecs
Signs Your Struggling Business Needs Help

We were having a conversation with an executive recently who shared about their experience parachuting into a business that was struggling with operational inefficiencies.

This executive, like many interims, kicked off the assignment by meeting face-to-face with the management team and employees to learn how the business functions, what’s working, and what isn’t. Their findings would turn into an operational roadmap of the business, where they would set out and implement a go-forward plan. When meeting with one team member and learning about what they did, the executive pointed to a process they had in place asking “why do you do that?”

 The answer: “Because we’ve always done it that way”

 (Alarm bells begin to loudly ring)

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