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April 22, 2022
Addressing Operating Challenges in the Middle Market
By Thomas L. Hidder

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

NYIC Panel Presentation

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

Thomas L. Hidder
Managing Director

With over 35 years of experience in the middle market, Tom is a proven leader for privately-owned businesses in transition. He is a results-oriented financial executive with extensive experience and strength in resolving strategic and tactical business issues, evolving organization structures, re-positioning business lines, managing creditor and investor relationships, contributing to Boards of Directors, and building and motivating teams to exceed business objectives.