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Turnaround Management Association�Dedicated to Corporate Renewal
Æ
VVVVVolume 6, Number 3olume 6, Number 3olume 6, Number 3olume 6, Number 3olume 6, Number 3 May 2005May 2005May 2005May 2005May 2005
TURNAROUND MANAGEMENT ASSOCIATION
From our President:A Season of Change;
Consider CTP Certification
Daniel FDaniel FDaniel FDaniel FDaniel F. Dooley. Dooley. Dooley. Dooley. Dooley
What’s Inside?� Upcoming Events — 2-3
� Past Events — 4-12
� TMA InternshipOpportunities — 4
� Pro Bono Committee — 8
� CTP Certified Members — 11
� What’s the Deal? — 13
� Summer CTP Certification — 13
� Member News — 14
� Rainmaker Seminar — 15
� New Member Profiles — 16
� Charity Golf Outing — 17
Continued on page 18
Host of the 2006
National Convention Most of us in the TMA view ourselves as some
type of “change agent” whether we are lenders, attorneys, consultants or other service providers. We thrive on applying our skills, products and services to situations that require significant change in order to serve
our clients and improve business values. We are different than the majority of ourmore traditional organizational counterparts who work in a relatively stable andstructured environment. In essence, most of us have made a living and a career onhelping clients deal with the traumatic effects of change on their business and itsstakeholders.
The irony of the backdrop I just painted is that we are not only change agents butalso “Burger King Entrepreneurs,” which means we very much like to have business“done our way.” We like change just as long as it’s happening to someone else, or ifthe changes involve us, we expect to heavily influence it.
The other irony is that we change agents are also change resistant. Does this typeof personality sound familiar to you? Sure it does! It’s the same personality inherentin your “difficult to deal with” client who claims that he (she) fully understands his(her) situation as the financial health of his (her) business continues to deteriorate.We term this phenomenon denial and attribute it to the lack of objectivity and troubledcompany situational experience of the client. Of course, this backdrop leads to myprimary topic for this newsletter.
Fundamental Changes in the Turnaround IndustryWe are witnessing fundamental changes right now that will forever change our
industry. As with our clients, those of us who study industry dynamics and adapt ourbusiness models quickly to those changes will benefit. Unfortunately, a good numberof our TMA members may deny that the industry changes are occurring and continueto operate in the future exactly the same as they have in their successful pasts. Yousee, past success tends to create over-confidence, which makes it much harder to seeobjectively what’s really happening today.
My purpose is not to be so presumptuous as to give you free advice (remember, youget what you pay for) on how to adapt your business models. Rather, I simply hope to
Please see page 17 for information about our Fifth AnnualCharity Golf Outing to take place on Wednesday June 22 atHarborside International Golf Center.
The Newsletter ofThe Newsletter ofThe Newsletter ofThe Newsletter ofThe Newsletter of
CORPORATE RENEWAL
Chicago/Midwest Chapter
The Newsletter of Corporate Renewal is a publication of theTurnaround Management Association, Chicago/Midwest
Chapter. It is issued five times annually. Submissions to thenewsletter should be directed to:
Drew Cardonick, 312-201-3921Joanne Chamberlain, 312-946-2096
Patricia Wu, 847-444-1400
ParliamentarianDavid M. StephenitchCrowe Chizek & Company312-899-7090
Pro BonoRaymond M. NeihengenALTMA Group LLC847-441-2973
Harry R. NovakBuccino & Associates, Inc.312-419-7514
David D. OnionChicago Capital Holdings LLC630-455-1002
Public RelationsTeresa B. GerlachNorth Fork Business Capital847-691-7920
Norman B. NewmanMuch Shelist et. al.312-521-2492
Scott A. PhillipsPhillips & Associates Inc.312-943-9100
Special ProgramsJosef S. AthanasLatham & Watkins312-876-7608
Mark A. BerkoffPiper Rudnick LLP312-368-7090
Scott H. LangBrown, Gibbons, Lang & Co. LP312-658-1600
SponsorshipRandall Wright PattersonLake Pointe Partners LLC312-857-0001
Mitchell B. RaskyLaSalle Business Credit, Inc.312-904-8858
Thomas F. ThompsonPNC Business Credit312-338-5650
Web SiteCheri AndersonMorris-Anderson & Associates847-768-4424
Michael L. Kayman630-531-6050
Women’s GroupSusan Barnes de ResendizGardner Carton & Douglas312-569-1213
Amy Lynne LongHilco Appraisal Services LLP847-313-4738
Suzanne PalmerLaSalle Business Credit312-904-7672
CommunicationsAndrew CardonickGoldberg Kohn et. al.312-201-3921
Joanne C. ChamberlainDeloitte312-946-2096
Patricia M. WuGreat American Group847-444-1400
Community ServiceBernadette M. BarronBarron Business Consulting312-855-0040
Lisa N. JohnsonWells Fargo Business Credit708-386-0899
Continuing EducationGail D. HeldkeWells Fargo Business Credit312-845-4455
Robert A. MorrisMorris-Anderson & Associates847-945-0767
Anu R. SinghHuron Consulting Group312-583-8791
CTP RelationsDuncan S. Bourne312-952-1080
James M. RubensteinAlert Consultants, Inc.847-501-5000
EntertainmentSuzanne KoenigSAK Management Services773-202-0000
Kimberly A. MetznerThe Collateral Resource Group847-681-8850
William ReimnitzRiviera Finance630-627-8750
FinancialJoseph J. FobbePNC Business Credit312-338-5688
Mark K. GertzofMerrill Lynch Capital312-499-3338
Future LeadersBarry DubinMerrill Lynch Capital312-750-6199
Chad PetersonBridge Associates800-838-6966
Inter-ChapterPaul E. KrantzGMAC Commercial Finance312-775-7062
Howard J. MullinMorris-Anderson & Associates847-475-0673
MembershipDavid BogetzBurnham Capital Partners LLC312-261-6936
Thomas E. JonesConcord Financial Advisors312-663-6684
Spike Schonthal847-835-8474
Milwaukee ProgramsMichael R. CollotonFirst Business Capital Corp.262-792-7180
Jeffrey S. HylandFort Dearborn Partners Inc.312-683-3657
Philip L. OstroskiAssociated Commercial Finance414-283-2367
Daniel G. QuirkAccuVal Associates Inc.847-876-1454
OFFICERS
PresidentDaniel F. DooleyMorris-Anderson & Associates847-768-4408
President-ElectWilliam J. HassTeamwork Technologies, Inc.847-564-5575
Vice President-ProgramsRandall L. KleinGoldberg, Kohn et. al.312-201-3974
Vice President-CommunicationsNorman B. NewmanMuch Shelist et. al.312-521-2492
Vice President-Community Serv.Lisa N. JohnsonWells Fargo Business Credit708-386-0899
SecretaryHarold D. IsraelKaye Scholer LLC312-583-2333
TreasurerJoseph J. FobbePNC Business Credit312-338-5688
AdministratorChristine M. GlatzManagement Services815-469-2935
Ex-OfficioPast PresidentJames K. VargoThe Bekins Acquisition Group708-649-7505
DIRECTORS
Mark K. GertzofMerrill Lynch Capital312-499-3338
Gail D. HeldkeWells Fargo Business Credit312-845-4455
Christopher J. HorvayGould & Ratner312-899-1624
Thomas E. JonesConcord Financial Advisors LLC312-663-6684
Robert A. MorrisMorris-Anderson & Associates847-945-0767
Norman B. NewmanMuch Shelist et. al.312-521-2492
Thomas E. PabstGreat American Group847-444-1400
Chad PetersonBridge Associates LLC800-838-6966
Roger “Biff” RuttenbergAtlas Partners, LLC312-516-5702
COMMITTEE CHAIRS
AwardsKelly FrankAuction Services Group312-223-8324
Colleen LowmillerFTI Consulting Inc.312-252-9343
David E. MackALTMA Group LLC847-441-1867
Breakfast ProgramsKevin KrakoraMesirow Financial Consulting LLC312-595-8511
Carl S. LaneDeloitte312-486-3069
Thomas E. PabstGreat American Group847-444-1400
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterTTTTTwowowowowo May 2005May 2005May 2005May 2005May 2005
Upcoming EventsMMMMMay 19, 2005ay 19, 2005ay 19, 2005ay 19, 2005ay 19, 2005Sales and Marketing Workshop“How Rainmakers Make It Pour”The East Bank ClubNoon - 6 p.m.See page 15 for more information
MMMMMay 25, 2005 – 6 - 8 pay 25, 2005 – 6 - 8 pay 25, 2005 – 6 - 8 pay 25, 2005 – 6 - 8 pay 25, 2005 – 6 - 8 p.m..m..m..m..m.New Members ReceptionMaggiano’s
JJJJJune 8, 2005 – 5:30 pune 8, 2005 – 5:30 pune 8, 2005 – 5:30 pune 8, 2005 – 5:30 pune 8, 2005 – 5:30 p.m..m..m..m..m.InterChapter event with St. Louis ChapterTexas Hold ‘em Networking EventRitz Carton, St. Louis, Missouri
JJJJJune 13, 2005 – 11:30 a.m. - 1 pune 13, 2005 – 11:30 a.m. - 1 pune 13, 2005 – 11:30 a.m. - 1 pune 13, 2005 – 11:30 a.m. - 1 pune 13, 2005 – 11:30 a.m. - 1 p.m..m..m..m..m.Women’s Group Networking LuncheonGardner Carton & Douglas
JJJJJune 22, 2005une 22, 2005une 22, 2005une 22, 2005une 22, 2005Fifth Annual Charity Golf OutingHarborside Golf CourseSee page 17 for more information
JJJJJuly 6, 2005uly 6, 2005uly 6, 2005uly 6, 2005uly 6, 2005TMA at Milwaukee Summerfest Music FestivalSee page 3 for more information
JJJJJuly 14, 2005uly 14, 2005uly 14, 2005uly 14, 2005uly 14, 2005ACG/MBBI/TMA Joint Annual Boat CruiseNavy PierSee page 3 for more information
SSSSSeptember 28, 2005eptember 28, 2005eptember 28, 2005eptember 28, 2005eptember 28, 2005We’ll head back up north to watch the MilwaukeeBrewers at Miller Stadium. More to come...
Turnaround Management Association
Chicago/Midwest Chapter
2005 Board of Directors
and
Committees
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterMay 2005May 2005May 2005May 2005May 2005 ThreeThreeThreeThreeThree
All Aboard!
Save the date for our Annual BoatCruise on Thursday, July 14, 2005,aboard the Mystic Blue at Navy Pier.
As in previous years, the cruise will be co-sponsored by the TMA, the MidwestBusiness Brokers and IntermediariesAssociation (MBBI) and the Associationfor Corporate Growth (ACG). Last year,nearly 300 professionals and their spousesor significant others enjoyed a beautifulsummer night as we cruised Lake Michigan
and took in thebreathtakingviews of theChicagoskyline. Pleaselook foradditionaldetails to come.Don’t miss thissummer’spremiernetworkingevent!
Milwaukee Summerfest
Music FestivalBy Jeff Hyland, Fort Dearborn Partners, Inc.
Join the TMA at Milwaukee’s SummerfestMusic festival on July 6. It will be a chance tohear some great music, have cocktails withfriends and family, and enjoy a night on the
shores of Lake Michigan. Of course, we all know theTMA can throw a party and this one will notdisappoint. We have rented a private tent for theevening and will have plenty of cold beverages thatSummerfest has grown synonymous with. Don’t worryabout that drive home – the TMA has arranged a blockof rooms at the Pfister Hotel for those who want tostay overnight.
Summerfest is held on 75 acres in downtownMilwaukee, and has musical entertainment on 13different stages including the 23,000-seat amphitheater, a smorgasbord ofthe area’s restaurants, activities and exciting amusement park rides. Nearlyone million attendees visit Summerfest each year and it is nationally recognizedas the “World’s Largest Music Festival.” While the national headliner forJuly 6 has not yet been released as of press time, all musical tastes areguaranteed to be satisfied.
Join us at Milwaukee’s premier music event of the summer. Mark yourcalendar for July 6 – more details will be available shortly.Photo by Robert Levy Photography
TMA Has “Learn & Earn” Internships AvailableBy Bill Hass, TeamWork Technologies
TMA introduces opportunities for interns in 2005-06:
Chicago Cubs be better off without Sammy Sosa?” You can guessthat response!
As always, Tannenbaum’s talk provided valuable insights intothe state of our economy. A few of the topics covered by Tannenbaumincluded the “Rodney Dangerfield Economy,” the strength ofconsumer spending, the so-called “housing bubble” and the “Battleof the [U.S.] Budget.” While pointing out several areas of concernfor continued economic growth, overall Tannenbaum’s outlook for2005 remained similar to that of the prior year – steady growth –resulting in a mixture of cheers and groans from the audience. Askilled presenter, Tannenbaum never fails to entertain whileenlightening the crowd.
Many thanks to Breakfast Forum committee co-chairs KevinKrakora, Carl Lane and Tom Pabst for providing yet anotherenjoyable seminar and to Deloitte for providing the real-time remoteresponders.
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterFourFourFourFourFour May 2005May 2005May 2005May 2005May 2005
Photos by Linda Jacobs, Alert Consultants, Inc.
Economist with a Twist:
Tannenbaum Presents
Predictions; Audience
ParticipatesBy Joanne Chamberlain, Deloitte
On Fr iday, March 11 , LaSa l l e BankChie f Economis t Car l Tannenbaumlooked to TMA members and guests tor o u n d o u t h i s a n n u a lpresentation on the state ofthe economy. Those attending thespring Breakfast Forum event were treated tothe opportunity to provide real-time answersby utilizing remote keypads provided byDeloitte.
Tannenbaum’s presentation, “Balancing OurBooks,” opened with questions to identify theaudience’s perception of current conditions invarious industries to their personal expectationson a number of issues, including economicgrowth, inflation and interest rates. He alsopulsed the crowd on their preference: “Will the
2005-06 TMA Chicago Intern ProgramOne page proposals are due A.S.A.P. for papers due April 30,2006.
Suggested TMA Chicago Chapter Topic AWhat is the size of the market and key segments for turnaroundmanagement and corporate renewal in the Chicago area andnationally? Interns will develop market research data andinsights that will be helpful in planning future Chicago andnational membership efforts and programs.
Suggested TMA Chicago Chapter Topic BCase Studies: “Restructuring Success or Failure”— Buildingon the research of previous intern teams, 2005-06 interns willbe required to create a comparison group of 3-10 companiesthat have passed though the U.S. bankruptcy courts in the last25 years.
2005-06 TMA International Intern Programs
TMA International Topic C (two available)Turnaround Case Bibliographies and Disclosure StatementKnowledge base: Help catalog and obtain significant casestudies and articles on turnarounds and corporate renewal forposting on the TMA web site. Upload case bibliographytemplates, disclosure statements, plans of reorganization andrelated articles to the TMA Academic Chapter web site for futureresearch.
Individuals can apply for Topic C and either A or B. Topics Aand B are ideal for teams. Topic C is an individual internship.
For further information, please contact: Bill Hass [email protected]
Event organizers Carl Lane (left) and KevinKrakora. Not pictured: Tom Pabst.
Carl Tannenbaum
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterMay 2005May 2005May 2005May 2005May 2005 FiveFiveFiveFiveFive
©2005 LaSalle Bank N.A.
HOW
DO WE
DO IT?
PROBLEM
SOLVERS
WELL
CONNECTED
The creative financing ideas of LaSalle Business Credit can turn almost any asset — from inventory, equipment, real
estate and even accounts receivables — into a loan for growth opportunities, debt restructuring and more. And, because
of our affiliation with ABN AMRO Bank N.V., we also offer international connections and a truly global perspective. Turn
your assets into working capital. From lines of credit to term financing to acquisition opportunities, we offer a variety
of flexible solutions for unlocking the power of your assets. LaSalle Business Credit is your simple, but powerful
“one-stop shop” for your financial needs. To find the LaSalle Business Credit office nearest you, call 1-800-721-5015.
$37,000,000 CADRevolving Credit and Term Loan Facilities
Kuntz Electroplating Inc.
Financing Provided by:
LaSalle Business CreditA Division of ABN AMRO Bank N.V., Canada Branch
Toronto, Ontario
$8,000,000Revolving Credit Facility
Damman Hardware
Structured, Underwrote and Acts as Agent:
LaSalle Retail FinanceBoston-Los Angeles-Washington, DC
$225,000,000Revolving Credit and Term Loan Facilities
The F. Dohmen Co.
Financing Arranged and Syndicated by:
LaSalle Business Credit, LLCMilwaukee, Wisconsin
$40,000,000Revolving Credit and Term Loan Facilities
Wood Resources, LLC
Financing Provided by:
LaSalle Business Credit, LLCBaltimore, Maryland
$12,000,000Revolving Credit Facility
Indian Summer Carpet Mills, Inc.
Financing Provided by:
LaSalle Business Credit, LLCAtlanta, Georgia
$25,000,000Revolving Credit Facility
Central Industrial Supply
Financing Provided by:
LaSalle Business Credit, LLCLos Angeles, California
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterSixSixSixSixSix May 2005May 2005May 2005May 2005May 2005
“Catch Me If You Can” –
A Seminar on Fraud PreventionBy Shira Roth, Goldberg Kohn
On February 24, 2005, the TMA hosted a very special full- day seminar on fraud prevention entitled “Today’s Fraud, Tomorrow’s Prevention” at the Palmer House Hotel in Chicago. The keynote speaker was none other than Frank
Abagnale, the man who inspired the movie “Catch Me If You Can.”As a teenager, Mr. Abagnale cashed $2.5 million in fraudulentchecks and successfully posed as an airline pilot, an attorney, acollege professor and a pediatrician. Mr. Abagnale delivered a speechabout fraud prevention – a subject he has lectured on for more than25 years. Mr. Abagnale also led a fraud prevention workshop forattendees.
The full-day event also included two panels. The first focused onasset statement fraud and included discussions regarding inventory,accounts receivable and fixed asset fraud in the presentation ofoperations, collateral reporting and other situations. The secondpanel showcased fraud in collateral reporting, including discussionson financial reporting issues that impact revenue and expensebalances, as well other types of business fraud. The seminarconcluded with networking and a cocktail reception.
Special thanks to the Continuing Education Committee for theirdiligence in planning this seminar: Bob Morris, Gail Heldke andAnu Singh. Additional thanks go to Chapter Administrator ChrisGlatz for her assistance.
Above: Abagnalewith event co-chairs BobMorris, GailHeldke and AnuSingh.
Right: Our twopanels focusedon assetstatement andfinancial reportingfraud.
Photos by Chris Glatz, Management Services
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter SevenSevenSevenSevenSevenMay 2005May 2005May 2005May 2005May 2005
� An aggressive asset based lender� Lender “fatigue” and/or bank workout situations� Historical Losses, high leverage, minimum net worth� Lines of Credit on accounts receivable and inventory� Term Loans on machinery and equipment� No long term contracts
William J. Burda, Jr.Regional Marketing Director
630-575-8545www.greatlakesabl.com
“helping our clients become bankable”
Chicago � Cincinnati � Detroit
$800,000Accounts Receivable and Inventory
Line of CreditEquipment Term Loan
Printing Company
$700,000Accounts Receivable and Inventory
Line of Credit
Sporting Goods Company
$800,000Accounts Receivable
Line of Credit
Logistics and Warehousing Company
$550,000Accounts Receivable and Inventory
Line of CreditEquipment Term Loan
Steel Processing Company
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter May 2005May 2005May 2005May 2005May 2005EEEEEightightightightight
Pro Bono Committee
Looks for LeadsBy Raymond M. Neihengen, White Oak Group
The Pro Bono Committee is pleased toannounce a special recognition program for theTMA Chicago/Midwest member who providesthe most project leads during 2005.
We need additional committee members tosolicit potential projects from financialinstitutions. If you are interested, please contactone of the committee co-chairs listed below.
Also, as part of the Milwaukee Programsinitiative, plans are underway to establish a ProBono project there. Anyone interested insupporting this effort, please contact LesPeterson at [email protected].
Pro Bono Committee Co-ChairsRay [email protected] [email protected] [email protected]
Photo by Chris Glatz, Mangement Services
Milwaukee Programs Committee Continues
its Success By Anne Sherry, Goldberg Kohn
OOOOOn Wednesday, March 2, the Chicago/Midwest Chapter held a seminar on theWisconsin Wage Lien Law in Milwaukee. The TMA’s Milwaukee events have
proven quite successful in the past, and this program was no exception. Attendeesgathered at the after-work program at the University Club of Milwaukee to hearBankruptcy Judge Susan V. Kelley speak on the finer points of the 2003 amendments tothe wage lien statute and the 2003 amendments to the Uniform Commercial Code,which also impact the lien laws.
Under the new law, all lenders in Wisconsin are subject to having their mortgagesand other liens primed by unpaid employee wage claims in the amount of up to $3,000for each of the borrower’s employees. This law has some obvious – and some subtle –effects on borrowers and lenders. Judge Kelley spoke about these changes and offeredpractical advice for counsel, intermediaries and advisors in both anticipating wage lienissues and dealing with existing issues. A lively question-and-answer sessionfollowed. After the presentation, guests networked over refreshments.
Many thanks to our Milwaukee ProgramsCommittee for continuing the outstandingprograms they offer to the northernsegment of our membership base. TheMilwaukee Programs Committee is shownhere with Judge Kelley, from left, JeffHyland, Mike Colloton and Dan Quirk. Notpictured, Phil Ostrowski.
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterMay 2005May 2005May 2005May 2005May 2005 NineNineNineNineNine
The First Ladies of TMA Visit “Jacqueline Kennedy:
The White House Years”By Patty Wu, Great American Group
T outed as one of Chicago’s must-see exhibitions,“Jacqueline Kennedy: The White House Years”celebrates the unforgettable style and class of one ofAmerica’s favorite first ladies. On Tuesday, March15, 2005, the TMA Women’s Group had the unique
opportunity to co-host an after-hours event at The Field Museum.Joined by the Women’s CPA Society, members and friends gatheredto peruse clothing and document selections from the John F.Kennedy Library and Museum.
Mrs. Kennedy’s impeccable taste and passion for the bestdesigners defined an era where people across the world – at times –seemed more interested in her latest dress than her husband’spresidency. Meandering through the glass-encased exhibits, it ismind-boggling to comprehend the amount of attention Mrs.Kennedy received from what appears to be a mass of silk shantungshift dresses. However, one must not underestimate the thoughtthat was put into each ensemble. The former first lady understoodthe importance of her role and chose pieces deliberately. Duringher trip to India, for example, she selected dresses in vibrant colorsto complement the style of dress in that country. Mrs. Kennedyapplied the same consideration, working almost exclusively with
the famed OlegCassini, for many ofher other trips andgalas at The WhiteHouse.
Possibly moreinteresting than thedresses thatdecorated Mrs.Kennedy’s period atThe White House,are the array ofpersonal trinkets andnotations sprinkledthroughout theexhibit. From itemsfrom her dressing room to personal thank you notes to sketches ofThe White House restoration, attendees enjoyed an intimate insightinto her life as the first lady. Thank you to the TMA Women’s Groupcommittee for planning another wonderful event!
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterTTTTTenenenenen May 2005May 2005May 2005May 2005May 2005
CTP Luncheon Attendees
Share Lessons Learned
on Asia SourcingBy Duncan Bourne, CTP
Chicago/Midwest TMA’s first CTP Luncheon series washeld on March 3, 2005, graciously hosted by TracyTreger and Ed Brooks at Gardner Carton and Douglas.Nineteen Certified Turnaround Professionals (“CTP”)and their invited guests attended and all had a good
time networking and discussing what has been called the mostimportant business transformation in economic history.
The CTP Luncheon Series is a new tactic in elevating awarenessof the CTP credential in the turnaround, banking, law and investorcommunities in Chicago. Besides the opportunity to marketourselves, the luncheons provide an opportunity for CTPs to rubelbows with each other and other invited experts, talk about sharedexperiences, and cross-fertilize contacts, issues and ideas. The CTPluncheon is available to CTPs and their invited guests.
For the inaugural CTP luncheon, we invited selected contactsfrom the private equity community to meet together and discussAsia sourcing. The group included a number of individuals withexperience overseas. The roundtable discussion was organized asa discussion of how-to’s and lessons-learned for early-, mid- andlate stage companies who are either already sourcing in Asia orabout to embark on the strategy.
The roundtable discussion yielded the following lessons-learned:
Early Stage — Deciding to source in Asia
� What business are you in?√ If compete on price, Asia is the place√ Success stories tend to be mature, more defined,
stable manufacturing requiring lessmanagement attention and less sustainedengineering support
√ Used to be higher tech stayed domestic. It ismigrating to China also.
√ Costs of longer/more inflexible supply chain –these can be more than you think
� Be sure that you include all costs – things that tend to bemissed are plant shutdown costs, personnel related,other contractual obligations, asset impairment, qualityinspection, rework, port delays, customer service related(air freight and other expediting) expenses
� Ensure that you evaluate intellectual propertyinfringement: 5-7% of all global trade is counterfeit.China is estimated to be source of 50% of all counterfeitgoods.
� Evaluate additional financing needed – supply chain ismuch longer
� Impact on ABL lines – ability to seize inventory ifdefault
Mid Stage — Difficult to go to Asia in this situation
� Liquidity Drain – Asia sourcing extends the cash cycle,it may even double it
� Time – Because of initial set up, initial purchase orderswill take approximately six months before firstdelivery (depends on complexity, higher technologycontent will be longer, apparel will be shorter)
� Set up cost: as a rule of thumb, $20 million worth ofsourcing is about $500 thousand in expenses up front
� Risk – if the company is fragile, even minimal mistakescan be body blows. Biggest mistake is not having awell-articulated quality control policy. Once the goodsare in a container, it isn’t Asia’s problem anymore.Ensure you have a representative on the ground. Ensurethat you have experienced supply chain personnel.
Late Stage — Already Asia Sourcing, CrisisManagement
� Expand liquidity√ Relationships are everything. Utilize personal
connections to get things done.√ Negotiate open terms – it can be done!√ Open L/Cs later – closer to ship date√ Utilize customer L/Cs
� Reduce/Eliminate Risk (Delivery/Quality issues)√ Quality problems can be the final blow√ Have representative on the ground – the only
way to really know what is going on –minimize latent production delays, QC trouble
√ Don’t put all your eggs in one basket. Usemultiple manufacturers. Split orders intomultiple containers to alleviate U.S. Customsdelays.
√ L/Cs must spell out QC requirements to be metbefore beneficiary can draw
� Communicate bankruptcy issues√ Relationships are everything.√ Explain difference between U.S. and “Rest of
World” bankruptcy. ROW = receiverships/liquidation.
√ War story: Flew Asia factory owner to U.S. tosee with his own eyes that there was actually abusiness in operation here – even though it wasbankrupt. He saw and he continued to sourceproduct.
For the inaugural CTPluncheon, we invited selected
contacts from the private equitycommunity to meet together and
discuss Asia sourcing.
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter ElevenElevenElevenElevenElevenMay 2005May 2005May 2005May 2005May 2005
AEG Partners LLCLawrence Adelman
Alert Consultants Inc.James Rubenstein
Alvarez & Marsal LLCBrian Whittman
American Express Tax &Business Services Inc.Alan Samsky
Arbor Point PartnersRobert Deprez
Atlas Partners LLCBiff Ruttenberg
BBK Ltd.Peter PappasRobert Webb
Burnham Venture ManagementRay Anderson
Capital Flow Corp.Russ Jensen
Capital Resolution Inc.John Ausura
Chatertered ManagementCompanyWilliam Avellone
Condor Financial Group Inc.Gilman King
Conway, MacKenzie & DunleavyFrank MackJoshua SianoJeffrey Zappone
Copperfield Chimney Supply Inc.Michael Barry
David C Finkbiner & Co. SCDavid Finkbiner
DeloitteThomas Williamson
Fort Dearborn Partners Inc.Jeffrey Hyland
FTI Consulting Inc.Kevin KubyColleen Lowmiller
Gandhi ConsultingKiran Gandhi
Glass & AssociatesRyan Shultz
Heartland Capital LLCTimothy Czmiel
Help at Home Inc.Barry Shear
High Ridge PartnersFrank Wojtowicz
Houlihan, Lokey, Howard & ZukinMatthew Niemann
Huron Consulting GroupThomas AllisonAnu Singh
JKS Business ConsultingJohn Sanders
KDC & AssociatesPatric Donahue
Kugman AssociatesSamuel Williams
Kutchins Robbins Diamond Ltd.Allen Kutchins
Lake Pointe Partners LLCDavid AllenRandall Wright Patterson
Lighthouse Management GroupMark Allen
Morris-Anderson & Associates LtdDavid BagleyMichael JakolatWilliam Van Der WeeleDavid AndersonDaniel DooleyRobert HaldiLarry HennessyRobert MorrisRobert Wanat
Promontory Point PartnersJeff Vogelsang
Reese Partners LLCSandra Reese
Shepherd Partners Inc.Tony Natale
TeamWork Technologies Inc.William Hass
The Belet GroupJacques Belet III
Vector Consulting LLCMichael Baratta
Samuel WilliamsSamuel Williams
Wynnchurch Capital LLPDuncan Bourne
The Chicago/Midwest
Chapter proudly
recognizes the following
organizations and their
Certified Turnaround
Professionals (CTP)
TTTTTwelvewelvewelvewelvewelve TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter May 2005May 2005May 2005May 2005May 2005
TMA Career Forum
Showcases Experience to
StudentsBy Shira Roth, Goldberg Kohn
OOOOO n February 22, 2005, the TMA Future
Leaders Group and the University of Chicago’s
Graduate School of Business hosted a presentation
regarding careers in the turnaround industry. About
85 students and professionals were in attendance at this
event held at the University of Chicago. Panelists
included distinguished professionals from various areas
of the industry: Carl Lane from Deloitte & Touche LLP;
Andre Zafrani from Greenberg Traurig; Dean Lindo
from United Airlines; Ben Nortman from the Hilco
Organization; Suzanne Palmer from LaSalle Business
Credit; and Andrew Turnbull from Houlihan Lokey
Howard Zukin.
After the presentation students and attendees enjoyed
cocktails and networked among a dozen legal and
financial firms. The 2006 Career Forum is tentatively
scheduled to be held at the Kellogg School of
Management in Chicago.
St. Pat’s Event Once Again a
Big HitBy Bill Reimnitz, Riviera Finance
N etworking, food, drink, music and basketball were enjoyed by allat TMA’s annual St. Patrick’s Day celebration at Fado’s on
Thursday, March 24, 2005. Although the event was held one
week after St. Patrick’s Day, everyone was still in the celebrating mood.
Chapter President Dan Dooley arrived in festive green, including his hat,
to provide a warm welcome for our local and out of town guests. JasonLeuvoy of Presidential Finance Corporation commented, “The annual St.
Patrick’s Day event at Fado’s has always been a great way to network
with colleagues in a relaxed and fun environment, while celebrating atrue Chicago holiday.”
Everyone enjoyed the music until the night’s main event began. Thanksto Entertainment Committee Co-Chair Kim Metzner, two TVs were ready
to go when the bitter NCAA match up between The Illini and UW-
Milwaukee began. A strong contingent from Milwaukee made sure thateven in Illinois, Fado’s was evenly split on the eventual outcome. Yes,
Illini fans went home with a win that night, but the festivities were
enjoyed by all.
Certified
Turnaround
Professional
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterMay 2005May 2005May 2005May 2005May 2005 ThirteenThirteenThirteenThirteenThirteen
presents
What’sthe
Deal?Doing business in Chicagoland
Great American Group’s Wholesale
and Industrial Services division recently
completed a webcast auction for Usdan
Paper Company of New Jersey.
Machinery and equipment from re-
winders to sheeters were available to the
public on site and online. The sale was
attended by papermill manufacturers
from as far as South America, Asia and
Europe.
North Fork Business Capital served
as agent, providing a $50 million
revolving credit facility to American Rail
Car of St. Charles, Missouri. ARI is a
leading designer and manufacturer of
railcars for industrial companies, railroads and leasing companies.
Signature Capital Partners LLC, a special situations investment
company that invests in the debt and equity of middle market
companies, is celebrating the completion of its first year in business.
During 2004, Signature completed nearly $40 million of investments,
opened a Chicago office with partner David McReynolds, and
launched its web site, www.signaturecap.com.
Bank of America Business Capital was the agent for a $250
million revolving credit facility to American Commercial Lines LLC,
a leading U.S. inland marine transportation company. The facility
will be used to refinance existing debt. The asset-based loan was
syndicated by Banc of America Securities, which also was joint book
manager of a $200 million senior note offering.
Tom Jones of Concord Financial
Advisors LLC recently referred a
fellow TMA member (lender) to
Concord’s client which resulted in a
signed $10 million transaction for the
lender. Concord then received a referral
from the same lender to one of the
lender’s prospects and Concord
received an $8 million transaction
engagement.
ALTMA Group LLC recently
completed a successful engagement for
the country’s 10th largest factor.
ALTMA implemented a cost reduction
program, revamped credit policies and
procedures, refinanced the existing $50 million credit facility and
arranged an $8 million equity infusion.
Winternitz Inc. is conducting a three-day auction sale May 11-
13 of surplus construction equipment no longer needed in the
continuing operations of The Dick Corporation, located in Pittsburgh,
Pennsylvania. The sale features major heavy construction equipment
used in the bridge & road division only. Sale proceeds are estimated
to exceed $10 million.
Morris-Anderson & Associates is proudly celebrating its 25th
anniversary. Since its founding by Daniel Morris and David Anderson,
CTP, the firm has helped more than 1,400 companies through
insolvency, turnaround and performance improvement. Please visit
www.morris-anderson.com for a list of the services available.
Please make note of the following dates for our “Everything You Wanted to Know About Turnarounds”
Summer Body of Knowledge and CTP Certification Series
DATE SECTION LOCATIONFriday, July 9 (All Day) Law Course Gardner Carton & Douglas
Saturday, July 10 (AM Only) Law Exam TMA HQ
Friday, August 19 (All Day) Accounting Course Gardner Carton & Douglas
Saturday, August 20 (AM Only) Accounting Exam TMA HQ
Friday, September 16 (All Day) Management Course Gardner Carton & Douglas
Saturday, September 17 (AM Only) Management Exam TMA HQ
FourteenFourteenFourteenFourteenFourteen TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter
Chicago Chapter
Ted Koenig, president of Monroe Capital, announced the opening ofcorporate offices in the Sears Tower at 233 South Wacker Drive, Suite5210, Chicago, Illinois. The new general telephone number is (312) 258-8300. Monroe Capital is a specialty finance company providing senior bridge,junior secured, and second lien debt, among other services.
Robert Haldi, an experienced Morris-Anderson & Associates turnaroundmanager and specialist in accounting and finance, recently earned theCertified Turnaround Professional designation from the ACTP. Morris-Anderson & Associates now boasts 9 CTPs in the Chicago/MidwestChapter.
Dirk Landis, area managing partner for Tatum Partners announces threenew CFO partners joined its Chicago office. They include: David Baker,previously CAO and CFO of Middleby Corporation (NASDAQ: MIDD);Tim Cunningham, previously CFO of eLoyalty (NASDAQ:ELOY) andCTS Corporation (NYSE:CTS); and John Miller, previously CAO andCFO of ShopperTrak RCT Corp. and CFO of Hubbard Street CapitalCorp.
Don Rudnik is an acknowledged contributor to the recently releasedHandbook for Financing Growth: Capital Strategies and Cases, a textbook-type how-to manual describing different funding strategies. Don contributeda case on successful turnaround financing of a $4 million acquisition of acompany under section 363 for $1 million and an interview on the state ofthe industry in factoring.
Dick Kallage of KDC & Associates Ltd. will be presenting a two-dayseminar on Operational Excellence for the Fabricators and ManufacturersAssociation International in Cleveland, Ohio, May 17-18. BBBBBill Bill Bill Bill Bill Barrarrarrarrarrononononon ofKDC will deliver an address on “Successfully Competing and Collaboratingwith China” at an FMA regional meeting in Dayton, Ohio, on May 10.
Suzanne Koenig, of SAK Management Services LLC, was a guest speakerat the 9th Annual National Medicaid/Medicare Conference in Sarasota,Florida, on March 10, 2005. Her presentation was titled “The TurnaroundOperator’s Perspective.” Suzanne is a healthcare turnaround consultant whospecializes in optimizing financial and operating performance in the seniorshousing and care industry.
Bernard Pump, a partner in the Deloitte & Touche LLP ValuationServices group in Chicago, participated in a panel titled “Evaluating RiskFactors on Emergence from Bankruptcy” at “VALCON: Legal and FinancialPerspectives on Business Valuations & Restructuring” in Las Vegas, Nevada.The conference was held March 3-4, 2005.
Scott Winicour has been promoted to vice president, sales & marketingfor Gibraltar Financial Corporation. Winicour will be responsible fororiginating asset-based loans including DIP financings under $5 millionsecured by accounts receivable and inventory, commercial real estate andproduction equipment.
Stew Bailenson had an article titled “Separation Pay With a Twist”published in the American Payroll Association monthly publication,PAYTECH.
Jeff Hyland, partner for Fort Dearborn Partners, is pleased to announcethe addition of Ed Sanz, CFA, to its Charlotte, North Carolina, office. Mr.Sanz has 20 years of experience in financial, accounting, valuation, mergers& acquisition and operations areas with manufacturing, distribution,printing, media, construction, service and software/technology companies. Morris-Anderson & Associates’ Chicago-based Managing Director RobertMorris, CTP, co-chair of the 2005 TMA Annual Conference in October,is scheduled to speak at the national Financial Managers Society ”Finance& Accounting Forum” in Las Vegas, Nevada, this June.
Deloitte & Touche LLP’s Carl Lane participated on a panel titled“Determining the Feasibility of Plans” at the February 26-March 1, 2005,“Recent Developments in Chapter 11” conference, hosted by the AIRAand held in conjunction with the Norton Bankruptcy Litigation Conferencein Park City, Utah. Lane is a principal in the Chicago Reorganization ServicesGroup.
Jim Munhofen, president and CEO of First Business Capital Corp.announced that Richard Wood has joined the firm as vice president ofbusiness development and is responsible for a new loan production officein Detroit, Michigan. He has more than 25 years of asset-based lendingexperience, including 15 years at Walter E. Heller Co. and five years withLaSalle Bank, ABN AMRO.
Norm Newman of Much Shelist is pleased to announce the addition ofnine new attorneys to his firm: Louis G. Apostol, David B. Goodman,James P. Hanrath, Vernon A. Kowal, Michael L. O’Shaughnessy and OranF. Whiting joined as partners; Robert G. Goldstein as of counsel; and JuliaA. Fuld and Carrie M. Risatti as associates.
Randy Patterson of Lake Pointe Partners LLC is pleased to announcethat Howard R. Korenthal has joined the firm as a managing partner. Priorto joining the firm, Howard was CEO of Connors Sports FlooringCorporation, a portfolio company of Code Hennessy & Simmons LLCuntil its recent sale. Previously he was a senior partner at Silverman Korenthaland Company.
Jack Welch turned General Electric Company from a so-so corporationinto one of the most profitable in the world. A primary business analysistool in the turnaround was the PIMS (Profit Impact of Marketing Strategy)program. This program is now available in easily usable format in a newbook by Phyllis R. Anderson. This book, How to Increase YourCompany’s Profits by Using the PIMS Program, is now available atwww.amazon.com.
Steven J. Appel, president of Appel Business Advisors Inc., was recentlya guest lecturer at the University of Wisconsin – Milwaukee GraduateSchool of Business course on Strategic Management. Appel’s topic, “WhenBusinesses Get in Trouble,” explored the causes of business deteriorationand failure, outlined telltale symptoms, and presented the elements of asuccessful turnaround process.
Member News
May 200May 200May 200May 200May 20055555
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter FifteenFifteenFifteenFifteenFifteenMay 2005May 2005May 2005May 2005May 2005
Learning Objectives
Learn from the best of the best on how tomore effectively market your services,differentiate your firm and build yourbusiness. We have assembled the topbusiness builders in insolvency/bankruptcy, commercial and asset basedlending, and financial advisory servicesto share with you their strategies andtactics for building and growing theirbusinesses. In this period of slowdownin the turnaround and workout business,it is more important than ever to marketeffectively and to land more competitiveengagements.
Who Should Attend?
Professionals who want to increase theirreferral and client flow, improve theirclosing rate and increase their personalincome. This workshop will benefit theseasoned pro as well as the newestmarketer.
Why Attend?
This is a unique event where many of thetop rainmakers in the Midwest and thecountry have agreed to come together toshare their highly successful strategiesand tactics with a TMA audience.
Agenda
12:00 p.m.Registration/Luncheon Buffet
1:00 p.m.How Legal Issues Can Impactthe Bottom Line (Legal Panel)
2:00 p.m.Break
2:15 p.m.Dollars and Sense (Cents):The Lender and You - WhyYou Need to Work Together(Lender Panel)
3:15 p.m.Break
3:30 p.m.Turning around the TurnaroundProfessional (Turnaround Panel)
4:30 p.m.Wrap-up / Q&A
5:00 p.m.Networking Reception &Appetizer Buffet
The Rainmakers Who Make It Pour…
Moderator, Jim Shein, McDermott, Will & EmeryTed Koenig, Monroe CapitalIra Kreft, Bank of AmericaGail Bernstein, PNC Business Credit
Moderator, Mark Berkoff, DLA Piper RudnickTom Allison, Huron ConsultingMelissa Kibler-Knoll, Mesirow FinancialJerry Buccino, Buccino & AssociatesMike Silverman, Silverman Consulting
Moderator, Frank Mack, Conway, MacKenzie & DunleavyJames Sprayregen, Kirkland & EllisMichael Solow, Kay ScholerKeith Shapiro, Greenberg Traurig
How RainmakersMake It Pour
Thursday, May 19, 2005
Noon – 6:00 p.m.
The East Bank Club
500 North Kingsbury
Chicago, IL 60610
$125 TMA Members
$175 Non-Members/Guests
At last, the answers to businessdevelopment and client flow!! All thequestions you’ve been wanting to ask, butdidn’t know who or where to go for theanswers! This workshop will help - learnfrom the master rainmakers.
Register today atwww.chicago.turnaround.org
Lenders Panel
Legal Panel
Turnaround Panel
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter March 2005March 2005March 2005March 2005March 2005SixteenSixteenSixteenSixteenSixteen
April Showers Bring TMA New MembersBy Patty Wu, Great American Group
Eric Christman originates and structures sale leaseback
investments on office and industrial real estate for AIC Ventures.
His responsibilities also include analyzing due diligence items and
raising investment capital. Prior to joining AIC Ventures in 2005,
Eric was a mortgage banker with his own firm Christman Capital
Corp., where he was responsible for completing debt and equity
transactions for a variety of clients including acquisitions,
development, and financing. In his free time, Eric enjoys sailing,
skiing, fly fishing and golf.
Ryan Rassin is a business development officer with Bank of
America Business Capital, the asset based lending arm of Bank of
America. Introduced by Allan Allweiss (the power of member
referrals – thanks Allan!), Ryan joined the TMA to become more
informed about issues in the turnaround industry and network with
professionals. With twins, Kate and Brady, Ryan stays busy out of
the office, too! He also enjoys playing golf and attending sporting
events.
Arrerk Stewart had his first turnaround management experience
as an AmeriCorps VISTA Volunteer with ACCION Chicago, a non-
profit Community Development Financial Institution that invests
in start-up or distressed micro-businesses in the Chicago area. At
ACCION, he was involved in every aspect of the turnaround of a
fund that lost 30% of the portfolio due to economic conditions.
This included restructuring old debt and investment, raising new
capital, reorganizing operations and creating new underwriting
policies. Currently a graduate student at St. Xavier University-
Chicago, he is also working as a research intern with JKV Global
Enterprises, an institution commodities and foreign exchange
broker, doing geopolitical and fundamental analysis. Arrerk enjoys
making electronic music similar to Kraftwerk or 1980s-early 90s
house music, cycling and being an amateur historian (early 20th
century).
John McKee, a full-time second year MBA student at the
University of Chicago, joined the TMA because he is interested in
doing private equity investing in the turnaround industry upon
graduation in June. John was introduced to the TMA through the
Turnaround Management Group on campus which was founded
last year. John’s favorite activity of choice during his free time is
golf, and he hopes to do a lot more of it once he finds a job. John
will be in good company once he assimilates himself with our TMA
group of avid golfers!
Please help us welcome the rest of our new members:
Robert Chatz, Call One
Jack Cochran, Morris-Anderson & Associates Ltd
Pat Earley, Engineered Glass Products
Alan Friedman, Alan Friedman Consulting
Charles Harrison, CMC Hearland Parnters
Robert Kordas, Huron Consulting Group
Jonathan Kron, Mayer Brown Rowe & Maw LLP
Vee LaCroix, K & L Financial
Peter Lowney, First Bank Capital
Robert Ollhoff, M & I Bank
Juan Ramirez, CIT Business Credit
Mike Solow, Kaye Scholer LLP
John Stanzi, Merrill Lynch Capital
Sandra Williams, Loyola University
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter SeventeenSeventeenSeventeenSeventeenSeventeenMarch 2005March 2005March 2005March 2005March 2005
R E G I S T R A T I O N F O R MRegister in any of these easy ways by June 1st and be eligible to win a set of golfclubs. All registrations must be received by June 17th.
Contact: Chris GlatzTMA AdministratorPO Box 33Frankfort, IL 60423
Name
Company
Address
City State Zip
Phone Fax
❑ Cocktails and reception only: ❑ $50(member) ❑ $75(non-member)
❑ New membership and single golf registration: $440(save $60!)
❑ Single golf registration: ❑ $165(member) ❑ $225(non-member)❑ Please put me in a foursome where I will connect with three new contacts.❑ I have made arrangements to play with golfers listed below.
❑ Foursome registration: ❑ $600 (save $60)The three additional golfers in my foursome are listed below.
P A Y M E N T I N F O R M A T I O N
_____________ Total payment due
❑ Check payable to TMA Chicago/Midwest Chapter❑ Charge my VISA, MC or Amex (circle one)
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Golfer
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Golfer
Company
Golfer
Company
Tel (815) 469-2935Fax (815) 469-1901 chicago.turnaround.org
(1)
(2)
(3)
Chicago/Midwest
Fifth Annual Charity Golf Outing
Take a chance in the Hole-in-One Contest –Sink that ball from the tee and win a Lexus RX330.
Wednesday,June 22, 2005Harborside InternationalGolf Center, Chicago
Two courses!
9:30 a.m. Registration
10:00 a.m. Box Lunch
11:00 a.m. Shot Gun Start - Scramble Format
4:30 p.m. Reception, Awards, and Silent Auction
provided by McGrath Lexus of Chicago
Hole Sponsorship opportunities still available.Contact Chris Glatz, TMA Administrator at (815) 469-2935 for more information.
Join us for a day of golf withyour colleagues and fellowTMA members on one ofChicagoland’s top courses.
To benefit Children’s MemorialHospital and The Make-a-WishFoundation
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest ChapterEighteenEighteenEighteenEighteenEighteen May 2005May 2005May 2005May 2005May 2005
get you thinking about some fundamental changes that are nowoccurring. So, here’s my list of fundamental changes:
1. Liquidity for private debt — Banks now have a real optionto sell debt quickly at even the smallest exposure levels. A fewyears ago, only large debt positions, primarily in publiccompanies, could be sold quickly. Given all the structuralincentives that banks have to sell troubled loans, will workoutdepartments ever expand back to the levels we saw in the lastrecession?
2. Junior secured and tranche Bcomplications — Unraveling the inter-creditor complexities between variousnew forms of non-senior but secureddebt in relation to the senior secureddebt is likely to create some veryinteresting battles in future workouts.The security positions and negotiatingleverage of these relatively new formsof debt are much broader and morepowerful than traditional sub-debtwhich has little leverage.
3. Hedge funds everywhere — Thephrase hedge fund is so overused thatit’s hard to precisely define. However, what’s clear is that hedgefunds are putting huge amounts of money into the market inall categories of the capital structure and in all sizes ofcompanies. Does anyone know how hedge funds will react whensome of their investments move into workout mode?
4. New group of full service financial advisory firms — Forall the obvious reasons, the accounting firms look like they arespinning off everything but auditing and tax services. The biggerboutique financial advisory firms with strong turnaroundconsulting roots are rapidly expanding to replicate the bigaccounting firm practices except for auditing and tax. Many ofthese firms will grow from hundreds to thousands of employeesrather quickly. What does that mean for middle-sizepractitioners?
These four factors are all fundamental industry changes. It surewill be interesting to see who reacts and how.
CTP – Meaningful Quality CertificationThe purpose of an association is to do more than we can do as
individuals or firms. Continuing education on turnarounds andrenewal is one of TMA’s primary goals and it has made – and willcontinue to make – a big investment in improving our educationalprograms. Great education for all TMA members is availablethrough the continuously improved ACTP review sessions. Thiseducation is not just for professionals that want certification.Lawyers can learn more about turnaround management andaccounting. Lenders can improve their understanding of the law.Practitioners can benefit from the education and certification processregardless of level or experience.
I want to personally encourage all chapter turnaround consultantpractitioners to invest the time and money to earn your CertifiedTurnaround Professional (CTP) Certification. There are severalreasons why you should make this professional commitment rightnow.
Every professional group needs some level of certification toseparate professionals with special knowledge and experience fromJohnny-come-latelies. Creating a barrier to entry to our professionimproves the quality and reputation of the profession and helpsprotect your practice. Also, CTP certification enhances yourcredibility in a legal proceeding and as an expert witness. Finally, aCTP certification also provides some layer of insulation againstpotential liability exposure for you and your firm.
My belief is that all TMA members mustband together to support the certificationof CTP. The value of the CTP will only befully realized when there is a strong criticalmass of CTPs such that a significantnumber of referral sources and potentialclients start to recognize the CTP as aquality differentiator.
Again, the key to this is the creation of acritical mass of CTPs. This is where weneed your help. I want to personally ask allthe top quality workout consulting andfinancial advisory firms and the best solopractitioners in our TMA chapter to investthe time and money to get CTP certification
for yourself and your people. In the long run, this will help bothyour profession and your business.
I realize that the most experienced and most successfulpractitioners may not need a CTP today to continue their successfultrack record. However, getting the high profile and most successfulpractitioners to earn this certification is what our industry needs toquickly make a CTP certification more valuable. I hope you arewilling to invest the time and money to help your profession andyour business.
The CTP class is broken down into three sections (which we liketo consider as “Everything You Need to Know About Turnarounds”)held one Friday a month in July, August and September with a testthe following Saturday morning. The 2005 schedule for the classesand exams, with all locations in downtown Chicago, can be foundat the bottom of page 13.
Please help us on this important initiative. Course flyers andenrollment forms can be secured from our Chapter AdministratorChris Glatz (815-469-2935 or [email protected]).
As always, I invite you to join me at one of our excellent upcomingTMA chapter events, which can be found throughout this newsletter.
Remember…Education, Networking and Fun!!
President’s Message, continued from page 1
My belief is that all TMA
members must band
together to support the
certification of CTP.
Membership ApplicationName:
____________________________________________________
Title:
____________________________________________________
Firm:
____________________________________________________
Address:
____________________________________________________
City: ___________________ State: __________
Zip: __________
Phone:_____________________
Fax: ______________________
E-mail:
__________________________________________________
Web Site:
__________________________________________________Referred by:__________________________________________________
Membership Category:Annual Mid-year Year End
(7/1-8/31)* (9/1-11/30)**Member �� $275 �� $150* �� $375**Academic/Govt. �� $115 �� $115* �� $150**Student �� $ 65 �� $ 65* �� $ 85**
* New members only; does not include Directory listing** Year end dues expire 12/31/06Memberships are on an individual basis only and are non-transferable.Membership includes a listing in the 2005-06 Directory of Membersand Services.
Method of Payment (check one):�� Visa �� MasterCard�� American Express �� Check
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Preferred Chapter: Chicago/Midwest
The Newsletter of Corporate
RenewalAd Rates
Full Page – $700Half Page – $400
Quarter Page – $250Eighth Page – $150
The Newsletter of Corporate Renewal is dis-tributed five times annually throughout the
midwest to executives and professionals in theturnaround arena. For more informationregarding placing an ad in this important
publication, please call:
Patty Wu847-444-1400
Turnaround Management Association100 South Wacker Drive, Suite 850Chicago, Illinois 60606
Phone: 312/578-6900Fax: 312/578-8336E-mail: [email protected]
TURNAROUND MANAGEMENT ASSOCIATION � Chicago/Midwest Chapter NineteenNineteenNineteenNineteenNineteen
The More You Know…
Did you know that if you pass the Certified Turnaround
Professional (CTP) exam, you receive a free
membership to the Turnaround Management
Association (TMA)?
As if the benefit of joining the high ranks of current CTP
members were not enough, as a member of the TMA you
have the opportunity to network with other industry
professionals and to participate in conferences and programs
that further educate you on the current happenings in the
turnaround community.
For more information, please contact Nicole Gibby at (312)
578-6900.
May 2005May 2005May 2005May 2005May 2005
Chicago/Midwest
The Chicago/Midwest Chapter of TMA thanks the following 200The Chicago/Midwest Chapter of TMA thanks the following 200The Chicago/Midwest Chapter of TMA thanks the following 200The Chicago/Midwest Chapter of TMA thanks the following 200The Chicago/Midwest Chapter of TMA thanks the following 20044444-200-200-200-200-20055555 Platinum and Gold Sponsors Platinum and Gold Sponsors Platinum and Gold Sponsors Platinum and Gold Sponsors Platinum and Gold Sponsors
Platinum Sponsors Gold Sponsors
Christine Glatz, chapter administratorP.O. Box 33Frankfort, IL 60423(815) 469-2935 Fax (815) 469-1901E-mail: [email protected]
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Permit 102Northfield IL
AccuVal Associates Inc.Atlas Partners LLCBack Bay CapitalBBKBuccino & Associates Inc.Conway MacKenzie & DunleavyDeloitte & Touche LLPFort Dearborn Partners Inc.Gardner, Carton & DouglasGoldberg, Kohn, Bell, Black,
Rosenbloom & Moritz Ltd.Gould & RatnerImpact GroupKugman Associates Inc.Mesirow Financial Consulting LLCNorth Fork Business CapitalTextron FinancialWinternitz Inc.
WWWWWelcome Melcome Melcome Melcome Melcome Midwidwidwidwidwest Best Best Best Best BusinessusinessusinessusinessusinessBBBBBrrrrrokers and Iokers and Iokers and Iokers and Iokers and IntermediariesntermediariesntermediariesntermediariesntermediariesAssociationAssociationAssociationAssociationAssociation.You have been included inthis complimentary issue ofThe Newsletter of CorporateRenewal because of our sharedinterests. We hope you enjoyit. Please note our eventschedule on page two and joinus at any of our upcomingmeetings. We look forward toseeing you.
