Equity Holders Under Siege - Hardcover

Owsley, Henry F; Kaufman, Peter S

Hardcover

ISBN 10: 1587983036 ISBN 13: 9781587983030

Publisher: Beard Books, 2014

Synopsis

A must-read for all constituencies of distressed companies -- owners, creditors, buyers and professionals. Owsley and Kaufman apply principles of asymmetric warfare to the "zero sum" game of restructurings. With a sophisticated approach and tongue-in-cheek humor, Equity Holders Under Siege gives readers an unvarnished behind-the-scenes look into the real world rough and tumble of negotiating on behalf of "under water" owners.
 
Owsley and Kaufman offer practical advice and hope for entrepreneurs and other owners who have poured their souls and treasure into their businesses -- only to find one day that it all can be taken away by creditors. They share actionable strategies for owners to reclaim their companies and extract value.
 
Potential purchasers of distressed businesses will benefit from Owsley's and Kaufman's in-depth look into the complex dynamics of how the various dis- tressed groups operate -- without this understanding, erstwhile buyers may discover that they've vastly overpaid.
 
Creditors and other constituencies will be better prepared to protect their investments after reading about the types of campaigns that will likely be waged against them by well-advised equity owners.

Owsley and Kaufman, both highly regarded in the insolvency field, have been trusted advisors in the ranks of the nation's top financial professionals for more than three decades. Like their first book, Distressed Investment Banking: To The Abyss and Back, their new book, Equity Holders Under Siege: Strategies and Tactics for Distressed Businesses, will quickly become the must- have guide for both new and seasoned legal and financial restructuring professionals -- those who play key roles in the economic struggle between debt and equity groups.

About this title

From the Inside Flap:

Owners of companies that have fallen on hard times face a daunting reality and formidable challenges from an array of competing constituencies all vying for a piece of a diminishing financial pie. Whether such companies are owned by a Private Equity firm, have been family owned for generations, or otherwise have longstanding equity interest holders, these "Old Equity" owners must adopt creative strategies and tactics to be "in the money."
 
Many of these methods are derived from military strategies used by guerilla troops facing significantly greater forces. In such "asymmetric" conflict, the smaller party can employ "force multipliers" to offset the other side's numerical superiority.
 
Opportunities abound to find asymmetric relationships in the debtor-creditor mix. If  Old Equity can exploit them, it has the chance to bring valuation and other traditional tools to bear in order to realize a maximum recovery. By understanding what moves it can make to influence creditors (with both positive and negative incentives), Old Equity can begin to claw its way out from the bottom of the capital structure heap.
 
Early recognition by Old Equity of both the existence of financial problems and the need to engage outside advisors is vital. The availability of time and the perception of volatility of operating results can benefit Old Equity by creating dilemmas for creditors, while simultaneously increasing option value for Old Equity.
 
Kaufman and Owsley draw on their decades of advising Old Equity of distressed companies, while sprinkling in lessons from William Wallace leading the Scots against the English; T.E. Lawrence and his Arab forces wreaking havoc on the Turkish army; Mao taking on the Nationalist Chinese Army; and the Viet Cong challenging superior American forces. While not every restructuring situation may lead to actual confrontation for Old Equity, simply the process of preparing for conflict can facilitate "peace breaking out."
 
By being adroit, strategic, and tenacious, Old Equity can greatly improve its prospects of achieving a meaningful recovery. Old Equity must avoid the conventional wisdom of believing that it is inevitably "out of the money." Instead, it should fight aggressively to maximize recoveries to the extent consistent with its fiduciary responsibilities.

From the Back Cover:

From the authors of Distressed Investment Banking: To the Abyss and Back, Beard Books, 2005. A must-read for all constituencies of distressed companies -- owners, creditors, buyers and professionals. Owsley and Kaufman apply principles of asymmetric warfare to the "zero sum" game of restructurings. With a sophisticated approach and tongue-in-cheek humor, Equity Holders Under Siege gives readers an unvarnished behind-the-scenes look into the real world rough and tumble of negotiating on behalf of "under water" owners. Owsley and Kaufman offer practical advice and hope for entrepreneurs and other owners who have poured their souls and treasure into their businesses -- only to find one day that it all can be taken away by creditors. They share actionable strategies for owners to reclaim their companies and extract value. Potential purchasers of distressed businesses will benefit from Owsley's and Kaufman's in-depth look into the complex dynamics of how the various distressed groups operate -- without this understanding, erstwhile buyers maydiscover that they've vastly overpaid.Creditors and other constituencies will be better prepared to protect their investments after reading about the types of campaigns that will likely be waged against them by well-advised equity owners. Owsley and Kaufman, both highly regarded in the insolvency field, have been trusted advisors in the ranks of the nation's top financial professionals for more than three decades. Like their first book, Distressed Investment Banking: To The Abyss and Back, their new book, Equity Holders Under Siege: Strategies and Tactics for Distressed Businesses, will quickly become the musthave guide for both new and seasoned legal and financial restructuring professionals -- those who play key roles in the economic struggle between debt and equity groups.

About this edition

• Publisher: Beard Books
• Publication date: 2014
• ISBN 10: 1587983036
• ISBN 13: 9781587983030
• Binding: Hardcover
• Number of pages: 224