Appel: Evaluating Turnaround Viability Quickly Is the Hardest Restructuring Challenge
Michael Appel · Every PE Investor Says the Same Thing When Asked Their Biggest Regret · Nov 14, 2023 · at 0:47
Turnaround specialist Michael Appel explains to Sean Weisbrot the primary challenge faced when taking on stressed companies.
0:00 / 0:30exact quote · 30.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“The hardest thing is really Really being able to evaluate the chances of success of the company. So that's the number one thing you have to do because you have to say to yourself, realistically, can you restructure a company? Can you turn it around or not? So that's number one. And that's tough because you have to do it and you have to do it quickly and you have to get a game plan together.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Michael Appel
Appel: No Retailer Has Ever Successfully Shifted From High-Low to Everyday Low Pricing
“My experience is there has never been a company that has gone from high low pricing to everyday low pricing that, that succeeded.”
Appel: Rite Aid Cannot Survive Against CVS and Walgreens
“I just don't see them, I don't see them survive, because they're like the third wheel, and you've got two strong, nationwide, well-run competitors.”
Appel: Liquidity is the primary prerequisite for any corporate turnaround
“Liquidity is number one. So that, because basically if you don't have sufficient liquidity to buy you the time to fix the company, you know, you can have the greatest team in the world. You can have a great plan, but you won't be able to make it happen.”
Appel: Organizations cannot execute more than four or five turnaround priorities simultaneously
“You can't do more than four or five things at the same time and get the organization to do it. You've got to really narrow it and say, okay, here's the 80%, I call it the 80% solution. Here's the four or five things we need to do to get 80% of the way there. A…”
Appel: Bed Bath & Beyond Alienated Vendors By Shifting To Private Label
“When you look at what happened at Bed Bath & Beyond, you know, the vendor community basically said, you know what, you know, you got rid of all of us. You went to private label. And now you want us to come back and, you know, we've already readjusted our busin…”