ABOUT THIS EPISODE
Two CRO mandates that both need money, why the work has exploded, how you actually make money buying distressed businesses, and the week I cancelled my own meeting.
This Week
• Two CRO mandates, both needing financing. One tied to a CCAA with a DIP loan, one that may never see a filing but needs money either way
• Winding up a small business after a distressed sale of assets — we came in too late, and the bank is letting us run the wind up instead of appointing a receiver
• Over $400 million of deals looked at at Interim Credit in the last several months, and multiple deals in front of Sapphire
• Why the explosion in activity? Partly the economy. Mostly access to capital, and capacity
Lesson Learned: In Distressed, You Make Your Money on the Buy
• The margin is always in the buy. Don’t pay for intended improvements. PE does add value, but it never pays for a bad purchase price
• It’s always culture. If a business is underperforming the problem starts there, and the impediments to change have to be priced at acquisition
• Change requires cash. The real risk to return is the post acquisition burn, which is the whole reason I started Interim Credit Corp
• From Panel 3 at Insolvency Insider’s Distressed Private Capital Conference, Toronto, November 12
Struggles: I Cancelled My Own Meeting
• Two presenters dropped and I called off the October 20 Inner Circle
• We don’t waste anybody’s time, so cancelling beat running a thin session. Apologies to all
The Inner Circle: Deals & Capital
• Free, private and live on Zoom, every two weeks at 3 o’clock Eastern. Next session is November 3, where I’ll show members how I’ve been using AI to lift our capacity. That part isn’t going public
• Free but not open — you register once and we review every request
Interim Credit Corp sponsors Bay Street for a Cause in Toronto on Thursday, November 5.
