April 22, 2022
Addressing Operating Challenges in the Middle Market
Tom Hidder, Managing Director at Harney Partners, participated as a panelist to discuss a variety of distressed business topics during an event hosted by the New York Institute of Credit on April 12. Additional participants included: Moderator, Robert Katz, Managing Director, Eisner Advisory Group LLC; David Burns, Director, Investment Banking Group, Imperial Capital, LLC; and Sydney J. Darling, Of Counsel, Porzio Bromberg & Newman
Discussion topics included:
- Evolving Status of Non-Consensual Third-Party Releases in Chapter 11 Bankruptcy Plans
- Lender-on-Lender Controversy Continues
- Current Operating Challenges in the Middle Market
- About Special Purpose Acquisition Company
Specifically, Tom led the discussion specific to operating challenges and remedies for the middle market.
Key operating challenges that were discussed included:
- supply chain disruptions (e.g., increased materials costs, delivery delays, transportation availability, etc.)
- workforce/talent issues (i.e., availability of qualified talent, rising cost of wages, etc.); and
- government programs like PPP Loans, Employee Retention Tax Credits and EIDL among others are contributing to further complexities.
What companies can do to address and minimize challenges:
- Focus on liquidity
- Improve cycle times for book-to-build, build-to-ship, ship-to-bill and bill-to-collect
- Carefully manage vendor payments
- Step up A/R collection efforts
- Increase transportation management efforts
- Minimize slow-moving inventory
- Reassess workforce planning/shrift structure/production runs
- Reevaluate CAPEX projects and priorities
- Optimize outstanding loan balances
Review presentation deck here: NYIC Panel Presentation
