A government bailout of another failed process?

How many investor billions might have been saved if they had asked a simple, common sense, question of Bernie Madoff; “How can ensure year over year returns of 20% or more”. The common sense answer is that no one can. And, that’s a very hard way to learn a lesson.
 
Communication
 
It has been my experience during my career, that in times of crisis, one of the most important things a leader does is to communicate clearly, appropriately and often with his entire organization.

Why?  Sr. leaders, managers and employees left in the dark about the realities of a particular situation or event (Is the business being closed? Are we filing bankruptcy? Is my job in jeopardy?) will be left to speculate, wonder and worry alone and in groups. And, all those negative activities among others are inherently un-productive both for the individual and for the organization. A leader in a crisis situation may not be able to divulge many things, but they can offer clarity, honest leadership and a commitment to work towards the right solution.

We hope you’ve found the site to be useful, friendly & informative.  Musings is my informal blog where I get the chance to express my views, thoughts and opinions on a wide range of topics such as Politics on Business, Leadership, and Practical Aspects of Business Reorganization, Turnarounds and Crisis Management.

But don’t be surprised if you find my musings on other topics as well! 

In 1993 when I founded my firm I had a simple premise: Help businesses, their owners, stakeholders and others through the maze of business reorganization while improving under-performing operations. 

What we strive to do at The McManigle Company is to provide leadership and answers that result in a stable, well-run business.  We’re not your typical consultanting firm: we’re not big on  theory or developing reams of data with questionable value that ends up in a bound report.  We cut to the pragmatic, factual and realistic chase and simplify the complex. We’re intent on finding real solutions and “making it happen”.

Simply, we make decisions and fix stuff!

Over the years serving in diverse industries and engagements, I earned my “been there, done that” T-shirt!  I live in Maryland and have worked across the country, sometimes for extended periods of time.  Each engagement is unique and I always find remarkable people and professionals that I have the joy of leading, working and serving with. And, the (hmmmm…challenge?) of dealing with more than a few characters along the way!

I invite you to connect with me here, on Facebook or follow me on Twitter. Better yet, just give me a call-I’d really like to hear from you.

“Drew is a first rate turnaround manager. He understands working with the various constituencies in a workout, he understands cutting costs and effecting change, and he provides excellent value for his services. It’s a pleasure to work with Drew.”

Stephen Selbst, Esq
Partner
Herrick, Feinstein LLC
New York, NY
September 14, 2009

“We asked Drew to step into a leading role at a troubled company to manage the preparation for and conduct of both a chapter 11 proceeding and a sale process. The case had a number of very difficult dynamics which Drew was able to handle quickly and efficiently. He was a pleasure to work with, respected by all in the matter and was able to get the job done despite enormous obstacles thrown into his path.”

Derek C. Abbott, Esq
Partner
Morris, Nichols, Arsht & Tunnell LLC
Wilmington, DE
September 5, 2009

“Drew is one of my go to guys to serve as an independent director or officer for my special situation transactions. He has been a tremendous asset in difficult restructuring, turnaround and distressed sale assignments.”

J. Scott Victor
Managing Director
SSG Capital Advisors, LLC
West Conshohocken, PA
July 22, 2009

“Drew is a take charge person. He knows how to analyze a company’s operations in order to ferret out the problems – and then he corrects them.”

Marilyn Simon, Esq.
M. Simon & Associates
New York, New York
April 16, 2007

“Drew is a skilled professional in crisis management. He brings a depth of knowledge built from years of successfully handling difficult management assignments and challenges. He is one of those individuals who gets it done right the first time and every time. I highly recommend him.”

Carl S. Grossman, President
Craftsman Press
Baltimore, MD
April 18, 2007

“I have had the good fortune to work with Drew when he became CEO of Southern Metal Products. As outside legal counsel to the company I found Drew to be exceptionally informed and good decision maker. Drew has a special ability to identify the problem areas and transition to a solution in short order. His background and experience allows him to apply his business acumen to numerous industries and recognize where change is required to achieve the operational goals.”

Kenneth J. Joyce, Esq
Partner
Brinkley, Morgan, Soloman, Tatum & Stanlry
Ft. Lauderdale, FL
January 9, 2009

“Drew, was a truly inspirational leader, dynamic communicator and always the example of  his expectations that he required from all employees regardless of their position. I am a better business person due to the time I spent working for Drew McManigle and highly recommend him without exception.”

Andrew Fortney
Former V.P. of Sales
Southern Metal Products, LLC
d/b/a All Broward Hurricane Shutters and Aeicor Metal Roofing
Ft. Lauderdale, FL
January 28, 2009

This was necessary after allegations of significant conflict of interest were verified against the incumbent GM. The resort had also suffered a decline in its valued Mobil star rating. Drew provided decisive leadership and a transparent management platform that enabled rapid operational change. He investigated and confirmed an internal conspiracy to commit fraud. He gained authority and brought rationality to an out-of-control construction process while effectively and seamlessly managing hotel & food operations, including hosting a visit from Town & Country magazine. He rapidly and successfully initiated a “paradigm shift” in operations and management practices that enhanced employee and customer satisfaction while improving revenues.

Importantly, Drew McManigle improved relations between the resort, business partners and the small mountain community while establishing a “clean-slate” for the new industry CEO & General Manager to build upon. The Resort is now a Mobil Four Star and AAA Four Diamond Resort.

Learn more about McManigle crisis management success stories here

Jane is an established national cosmetics provider whose quality cosmetic lines fill a niche between value and more expensive cosmetic brands. It had annual revenues of approximately $25 million, but was in financial and operational distress due to significant cash liquidity issues arising from the 2008 economic crisis, actions by retailers trying to curb their inventory and questionable management practices. He assumed control of the business as he prepared it for a Chapter 11 filing in Wilmington Delaware.

During this engagement, Drew successfully revised an existing operational budget and obtained a debtor-in-possession financing commitment from its senior secured lender that provided funds to continue operating during the bankruptcy proceeding. Significant milestones in this highly challenging case were: seamlessly maintaining the debtor’s business and customer base made up of national retailers such as Wal-Mart and Rite-Aid. Negotiating and gaining approval of an arms-length asset purchase agreement with a “stalking horse bidder”. And, acting as the de-facto investment banker leading a vibrant 11 USC 363 asset sale process that reached over 30 prospective bidders. These tenacious efforts resulted in a successful asset sale valued in the $7.3 million range that was approved just 53 days from the date of the original petition. Post closing, Jane continued its on-going operations under new owners.

Learn more about McManigle crisis management success stories here

As Receiver, he initiated and supervised the prosecution of complex fraudulent conveyance and asset recovery litigation spanning four countries, three Caribbean nations and utilizing the services of thirteen separate law firms. All these efforts yielded over $3.0 million in cash, assets, settlements and judgments, including recovering $700,000 in negotiable bonds secreted in a Swiss bank.  These determined efforts resulted in a worldwide, multi-party settlement of all disputes and litigation, including obtaining a non-dischargeable $1 million promissory note from the principal, leading to a significant recovery to the estate net of all professional fees.

Learn more about McManigle crisis management success stories here