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How to Jump-Start a Digital Transformation: Restructuring

RecapFebruary 29, 2016

“If knowledge can create problems, it is not through ignorance

that we can solve them.”

― Isaac Asimov

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The disruptive impact of digital technologies has varied considerably across industries.

In a recent overview, consulting firm BCG laid out the optimal path for companies in those industries that have thus far been insulated from digital disruption.

How to Jump-Start a Digital Transformation

See full story (here)

BCG Perspectives (@bcgperspectives)

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The impact of massive disruption in the newspaper publishing industry continues to claim victims, as newspaper publisher McClatchy Company struggles with a debt burden of over $900 million in onerous debt burden and the threat of a NYSE delisting.

Newspaper Publisher The McClatchy Company Commits to Reducing Debt

See full story in Mergers & Acquisitions (here)

Valuation Balance SheetShare Price 1.09$ Total Cash 19.6MMEnterprise Value 1.04B Total Debt 965.8MM

Income Statement ProfitabilityRevenue (ttm) 1.06B Operating Margin 6.9%EBITDA (ttm) 164.7MM EBITDA Margin 15.5%

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While every restructuring situation is different, the components of success are very consistent.

AlixPartners identifies the following as crucial components to a successful restructuring: 1) Focus, 2) Practical Goals, and 3) Stakeholder Buy-in.

Planning for Successful Restructuring

See full story in AlixPartners (here)

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Bloomin’ Brands to Restructure

Restaurant operator Bloomin’ Brands, with over 1,500 locations, is facing declining performance at each of its concepts: Outback Steakhouse, Carrabba’s Italian Grill, Fleming’s Prime Steakhouse & Wine Bar, and Bonefish Grill.

The company will take a $24 million impairment charge, close 14 Bonefish Grill locations, and will look to divest its real estate holdings.

See full story in Nation’s Restaurant New (here)

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Revenue and Gross Margin

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The impact of more than a year of lower oil prices is forcing shale oil companies to more actively investigate restructuring options and drastically ratchet back their capital expenditures, as the capital markets become increasingly resistant to funding cash flow negative enterprises.

U.S. Shale Oil Drillers are Finally Buckling

See full story in Bloomberg (here)

• David Johnson is a career change agent who has served as interim manager or financial advisor on over $5 Billion of distressed middle market transactions.

• In his nearly 20 years as a change agent, David has served as an advisor, board member, interim manager, investor and operator at organizations ranging in size from pre-revenue startups to Fortune 500 organizations.

• David has several publications to his credit and is a regular speaker on the topics of change management, performance improvement, turnaround and restructuring. He received his MBA from the University of Chicago and completed his undergraduate studies at Fairleigh Dickinson University.

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David Johnson

Email: david@acm-partners.com

Ph: 312-505-7238

Twitter: @TurnaroundDavid