By John M. Collard
Investors and lenders aren't in the business of closing down companies - nor do they want to be. When an investment or credit becomes financially troubled, they often seek an alternative to closing down the business.
A company's financial problems often result from mismanagement. When existing management doesn't possess skills to deal with crisis, a turnaround specialist may be needed.
When trouble occurs many investors want to insert themselves as the CEO to determine what should be done. While many investors have run financial or investing institutions, few have run companies as well, and are ill equipped to do so. There is substantial value derived from investors who also have senior operating leadership experience in their background. They can determine whether one strategy or another can affect the revitalization, and why others didn't work in the past. Many equity firms are adding operating executive [CEO] talent to compliment their managing partners - even in times when resources are tight.