Jeff Sands
@Turnaroundartst
Followers
5,533
Following
963
Media
72
Statuses
1,319
Corporate turnarounds and distressed acquisitions.
VT/NYC - have gun will travel
Joined April 2015
Don't wanna be here?
Send us removal request.
Explore trending content on Musk Viewer
Lions
• 111718 Tweets
Ricardo
• 107697 Tweets
Karime
• 93200 Tweets
重陽の節句
• 63464 Tweets
#TheStatement7
• 59206 Tweets
Rams
• 42614 Tweets
Alice Guo
• 41487 Tweets
シーザリオ
• 37129 Tweets
昭和99年
• 33045 Tweets
Didi
• 27189 Tweets
ZEE x COS
• 24131 Tweets
Stafford
• 22371 Tweets
高市さん
• 20956 Tweets
Goff
• 15229 Tweets
#LISAxVogueKorea
• 14969 Tweets
कारगिल युद्ध
• 14013 Tweets
PRABOWOJKW TetapSELARAS
• 13273 Tweets
कैप्टन विक्रम बत्रा
• 12858 Tweets
Guo Hua Ping
• 12830 Tweets
ADUdomba UdahGAKJAMAN
• 12763 Tweets
斎藤元彦知事
• 12620 Tweets
BTS IS SEVEN
• 11747 Tweets
परमवीर चक्र
• 11248 Tweets
落語心中
• 10347 Tweets
Pinned Tweet
Case Study - Out of Court Turnaround - Failed $300M Industrial Roll-Up
Turnarounds are hard to write about. When you’re in them the future is uncertain and the threat of litigation fills the air. Afterwards, you’re either exhausted on a beach or on to the next turnaround, so no
36
44
455
Published (and exhausted) - everything I could remember after 18 years of fixing highly distressed businesses, starting with my own. Critical reading for anyone trying to keep a business afloat, or prior to signing a personal guarantee. Winter is always around the corner.
17
10
224
@trentjhughes
I unknowingly started mowing my lawn at 11:30p when living in Alaska. It’s a common problem with neighbors because everyone loses track of time.
9
0
147
@moseskagan
They'll settle for half. This collector probably bought the paper for 10% of face value.
3
1
139
@APompliano
I'm sure it's a deeply held belief developed from years of study and reflection on the topic.
4
0
39
@zwickeak
@Steinernomics
@GRomePow
Yes thank you for injecting double entry accounting principles into this conversation. Why do people treat the federal balance sheet as if it’s a magic box?
3
1
61
@SecretCFO
brilliantly captures the energy/focus phases of a turnaround. As the leader you need to bring the team through these phases and show them that this is transitional. These two Secret CFO articles are great resources for business turnarounds.
4
9
61
@QCompounding
So true and funny.
My Icahn book recommendation is King Icahn. Written by his neighbor and friend. Icahn authorized it and shared openly. Then on the eve of publication tried to forbid it and intimately sued his neighbor.
Best section I remember, it may have been from an author
3
1
57
@teddyj_CEO
Some free advice from someone who has been there many times;
1. Take care of yourself first. Family second. Everything else 3+.
2. Make sure you’re running the business with a 13 week cashflow forecast.
3. If you had a magic wand what would you do? I like the “if you asked
4
2
43
@trentjhughes
Depends as Alaska is as far south to north as Miami to Boston. In barrow the sun doesn’t set for 2-3 months (I forget). Fairbanks golf courses have midnight tee times. These places are the opposite in winter. Anchorage sets around midnight but it’s still light enough to read a
5
0
39
Frankly this is a sign of health. Capital and labor which have been trapped in zombie companies are finally being freed to find more productive uses. We cannot have dynamism without dynamism.
US BANKRUPTCIES HIT THE HIGHEST LEVEL 14 YEARS:
There have been 346 bankruptcy filings in the US, year-to-date, the most since 2010.
SHOCKINGLY, in June alone there were 75 bankruptcies, higher than every single month during the COVID crisis.
Hard landing is now a base case.
22
523
1K
5
2
37
@Restructuring__
4) am I wrong?
>>> Graduate from a target school, do IB or consulting at a top tier, raise $200M based on your pedigree and an undifferentiated thesis, compete with your peers to overpay for businesses you (frankly) don’t know how to run, enjoy your 2/20, obfuscate losses, raise
2
0
36
0
5
35
@CLouvi
What’s wrong is overlooking what seems to be working. I’ll trade you 4 color printers for any absentee business mailing me $100k/month. .
1
0
33
One of my favorite turnaround articles.
3
5
31
@BrentBeshore
I’m telling you; 90% of businesses have not yet done 52 week cashflow forecasts, 95% of businesses are under-reacting. 99% don’t have a written plan to deal with this. Only 1-2% businesses will emerge stronger. To survive this you MUST move faster than the calamity.
4
2
28
@PrivatEquityGuy
My mentor is a billionaire with ~50 companies and he puts each one on an ABL revolver and has each company publish daily borrowing base reports - because of the discipline and attention to working capital it requires.
2
0
28
@BrentBeshore
On family car rides we used to play the drive-by-analyst game. We’d point at a business and try to figure out what they did, what the (this sounds more sophisticated than it was) financials looked like and how we could increase earning/ 50%. A 9 yo doesn’t know what a balance
3
0
26
Retweeting my own comment, reminded daily that this is probably the most accurate thing I've ever said.
If you understand the cashflow forecast, you understand the business.
0
0
9
2
2
21
@ianellisjones
Great write up. The US should offer all these sailors asylum and we can take 4 of thier ships peacefully .
2
1
21
A timely article I helped put together. Have you adopted a mindset to survive at all costs during the COVID-19 crisis? Here's how to do it.... via
@Inc
2
2
17
@TheIcahnist
@PrivatEquityGuy
@PEoperator
@privateinequity
@BoringBiz_
This is great and thanks for the plug.
Taking nothing away from Tapie, France is a wonderful place to buy companies for 1-Euro. Most European countries have mandatory 2 year severance and social obligations that would blow the American mind. For emphasis - you are
1
0
17
@patrick_oshag
PE needed this. Values were absurd and $$ over supplied. Some smaller shops will choke violently on what they swallowed during the buffet. Although, lender structures have grown weak, so few covenants to force change, so it’s about cash. ABL shops were trolling me for deals today
0
0
17
@LPWhisperer
Please don’t tell me Grant Cardone is anything less than his plumage. My faith in humanity would be dashed.
2
0
14
@RobertMSterling
Have you seen the Sears tower? Remember Sears? Chrysler building was a stunner in its day, anyone remember Chrysler?
1
0
15
Restructuring Wave Coming for Private Equity
2
1
16
@DallasAptGP
How do you make this post without a single number or chart or anything beyond words to discuss a quantitative issue?
2
0
16
.
Case Study - Fighting Town Hall.
175 workers packed the courthouse and won.
The Mayor, the head of the county EDC and about 15 other prominent “Town Fathers” owned the building which housed the failed metal extrusion business that had just announced it was closing. We wanted
1
0
15
Honored to be on another great podcast. Byron's podcast provides a real service to entrepreneurs.
0
0
15
I’m seeking expert insight into a US based upholstery fabric manufacturer with several mills around the world and less than $500M in revenues. I’m looking for an executive in this industry who might be able to help me answer some questions and develop an investment thesis on a
1
3
15
Two things can be true at once; it doesn't feel like inflation has flattened and it has.
3
1
16
This is brilliant.
This is what Michael Mauboussin considers to be the ultimate checklist for measuring the moat of a company.
8
91
624
0
1
17
@joshuamschultz
Wow, thanks for the call out Josh.
I know what you're saying and this might help frame it, there are the corporate change folks who (we read about this a lot in school and it's a lot of the consulting industry) change leadership and culture and results (let's say 10-20%) over
2
0
14
@shl
I appreciate the sentiment but the high rate of failure exists outside of VC. Certainly less than 10% of the failed businesses I've explored failed for your reasons as cited. Time is also not your friend, statistically. That's 10 years exposed to objective and fatal risks.
5
0
14
@jmover
@TheStalwart
Or better quality undergrad education than ivys - but that doesn’t really roll off the tongue.
1
0
13
I can certainly explain why student debt should be dischargeable in bankruptcy. The current system redistributes wealth from poor students to collegiate admins who educate no additional students than they did 30 years ago, even with twice the buildings and 4X the overhead.
2
1
13
@girlziplocked
Half of applicants tonmed school don’t get in. We could let in the an extra 10%, the next most qualified 10%, and our national healthcare would improve to the benefit of all. Instead doctor numbers are constrained below demand to artificially maintain high pay for doctors.
#2
-
4
0
13
Psyched and honored to be included.
Excited to announce the second annual
@MainStSummit
on October 9-10, a festival for business owners, operators, and investors.
Last year welcomed ~1000 people from 8 countries for two days of chatting, learning, and fun.
Tickets:
Initial lineup 👇
31
16
174
3
0
13
Thanks for posting. I’ve retold that story many times from memory. The lead up to how he was getting screwed out of Starbucks is just as good.
This is a story told by Howard Schultz on the Acquired Podcast about how Bill Gates Senior helped him acquire Starbucks.
This is also an example of how incredibly lucky I was to have Bill Senior as my mentor, role model and friend. He was a giant in every way. I miss him a lot.
8
31
258
1
2
11
@privateinequity
Assuming I'm reading this correctly, you can pick up $5M in ebitda on non-capital operational improvements and only $1M on pricing. I'm surprised there is not much room in pricing > implies long contracts or a full year of backlog. 1/
1
0
12
Honored to be invited on another exceptional podcast to talk about my favorite subject. Subscribe to the Value Hive and check out the back catalog including such esteemed guests as
@BrentBeshore
and
@moseskagan
New Podcast is Live!
Our guest:
@jeff05251
Jeff (literally) wrote the book on turnaround situations. No better timing!
We chat:
- Cash vs. Accrual Accounting
- First Steps In Turnarounds
- Why Cash is King
- What makes a good business
and more!
1
0
12
2
0
11
Honored to have been able to sit down with The Anthony (Pomp) Pompliano on his podcast recently. Great questions, fun interview and a cool dude. Thanks for the opportunity.
Every business needs to be fixed at some point.
Jeff Sands (
@Turnaroundartst
) is one of the best turnaround executives. He wrote an entire book on it.
We discussed how he fixes failing businesses & what to do so your business never gets there.
23
13
53
7
1
12
Great inside-baseball advice for most business owners.
Bank Market Update and COVID Impact for Middle Market Bank Credit Agreements (THREAD)
1. Covenant Issues
2. EBITDA Addbacks
(1)
2
6
97
0
0
11
I had the honor of sitting down with
@benton_moss
and
@DailyMunger
on thier podcast. Thanks for the opportunity fellas. Circle of Competence is a great podcast - subscribe and rate in apple tunes.
0
2
11
@DCota19
@DanPriceSeattle
At the risk of self promotion I just wrote a 336 page guide to dealing with exactly this for small business owners - from my experiences in Katrina to fixing dozens of businesses since. Click my photo. All profits are donated.
1
2
9
@BrentBeshore
See what SBA accomplished in Katrina, with a very limited impact zone surrounded by a healthy and functioning nation. Then scale back expectations based on a global pandemic.
1
2
10
@privateinequity
I’ll go, manufacturing assets can come very cheap, fully depreciated, under-utilized and able to last nearly forever. If (IF) you can buy cheap and then fully utilize the assets the operating leverage can be mind boggling.
It usually doesn’t work for all the obvious reasons
1
0
11
@SecretCFO
Wow what an accurate little summary of life in the retail food supply chain; “kicking seven shades of shit…”.
0
0
11
@SBA_Matthias
Now that is a robust and thoughtful response. Perhaps the first I've seen in response to all these shotgunned allegations from LPW.
OMG the difference between what you just did and (well, two examples come to mind), the first is someone running away and never defending
5
0
10
@Will_Schryver
I work with a billionaire and every one of his companies runs on a 13WCFF and daily borrowing base reports. It provides the best transparency into a business imho.
3
0
10
Here's another great podcast I was fortunate enough to be interviewed on regarding corporate turnarounds. Check out the back catalog for M&A Unplugged as well.
Episode 45 of M&A Unplugged is live! Click below to listen to Jeff Sands, CTP, Managing Director of Dorset Partners LLC, discuss corporate turnarounds during these uncertain times:
0
0
2
0
0
10
If you understand the cashflow forecast, you understand the business.
0
0
9
Honored to be featured on Northstar’s Private Equity Podcast. Topic: Saving your Business Now.
1
0
10
@huntercdurham
Excellent and well needed Hunter. I laugh at the prospects of overcoming the Twitter lemming-like hype of SMB ownership but every cautious voice helps on the way in. And knowing there is help once the tide turns is a great resource. Ideally while there are still good options.
2
1
10
@SBA_Matthias
Let’s first clean or mute the smbtwit of fools, grifters, overhypers, immature children talking about risk-free entrepreneurism, making claims that are not true, supporting “friends” who make false claims, selling classes from an empty pocket, shaming people who ask tough
0
0
9
@kevinolearytv
Kevin I’m a restructuring expert and I think this is going to be too much. It’s going to cut deeper than the bottom 5-10% of performers. I’m also learning to be more sensitive because this is so widespread, uncontrolled and severe. Win or lose entrepreneurs are heroes.
0
0
8
@BoringBiz_
Very well done. I’ll also mention that restructuring debts liened on your AR and INV, restructuring those dents into a long debt debt then frees up AR and INV collateral for additional working capital lending needs.
I view it as an analog to DIP lending where the new money
1
0
9
@ShaneAParrish
In my experience that’s not true, most are blaming themselves and carrying a heavy emotional burden.
Now to the extent it is true, most industries (obviously) break down on a bell curve. My question to the minority poor performers is why you? And the answer is never, Them. But
0
1
8
Subchapter V of Bankruptcy Chapt. 11 has literally saved hundreds of businesses which would have otherwise been liquidated.
1
1
8
@BobEUnlimited
Is this all purposefully misleading comparisons between, say, W2 income and Cap gains? Or between wealth on the balance sheet of a billionaire vs. income tax on my W2 neighbor? I see many people confusing income tax with wealth tax.
4
0
8
Too Much, Too Soon? JPM's Chief Economist said something like; 'we patched a $1 Trillion shutdown with $4 Trillion. Most sectors are strong; Consumer, housing, staples, autos. Was that it for the recession? Now recovery and expect 4% unemployment in mid '21?
1
0
8
@Best_Distressed
$5.5 Trillion is sitting in US bank accounts that did not exist pre-pandemic. We'll shoot another $20 Trillion out the end of a fiscal cannon long before we accept another recession. Bubbles have become a basic human right.
0
0
8
Some findings from my friends at Chiron Financial LLC 1/
1
2
8
The banks have largely flattened the curve of commercial debt and will certainly hold it through summer, slowly dealing with issues only as they must. SO much liquidity sloshing around in the markets, bankruptcy auctions are well attended and strategics are paying high prices.
0
0
8
@FranchiseMnA
1. James Madison
2. George Washington
3. Woodrow Wilson
4. Andrew Jackson
5. James Garfield
6. John Adams
7. John Quincy Adams
8. Grover Cleveland
9. William Henry Harrison
10. Thomas Jefferson
11. Andrew Johnson
12. Abraham Lincoln
13. James Monroe
14. James Polk
2
0
5
@LHSummers
Hi Larry, you mentioned $12T in post covid “wealth creation”. Can you site the source or how it adds up? I’m trying to keep track of this reckless over spending from home. Thanks.
0
0
8
@Mitchblackmon
OP; yes. Rule of thumb, better than -10% ebitda should be fixable but gets real hard beyond -15%. Value? What's the next best offer? If it's a forced liquidation calling on the personal guarantee and legal bills, then it's easy to 'outbid' that offer.
2
1
8
1/ A View From The Bottom. Turnaround and restructuring firms got busier and spent 2019 hiring and building staff in anticipation of a recession based on, not the stock market but; the abrupt trade war driven decline in Chinese economy, ripple effects through the rest of Asia,
1
1
7
@Claudia_Sahm
$6,000,000,000,000 in stimulus here, $6,000,000,000,000 in stimulus there - nope, couldn’t be that. The only supply chain disruption was the explosion of consumer demand. Normal demand patterns would not have caused backups at the ports.
0
1
7
How's this for a small business commercial debt stack? $2.5M @ 72% APR, $1M @ 80% APR, $300k @ 119% APR, and $200K @ 175% APR. Plus a bunch more. Annual debt service is 70% of revenues. Yes, this sort of lending skirts usury laws and it drives companies out of business daily
4
0
6
Laughter is the best medicine for our troubles. A thread of insolvency humor;
3
0
7
@SBA_Ray
Well done Ray, and needed. The crowd here on smetwit sells acquisitions like it’s a guaranteed path to generational wealth. I got a call from a brilliant ivy educated woman who bought into the hype, borrowed $800k from family, $8M from the SBA and her industry shifted 6 months
1
0
7
"The difference in reaction magnifies quickly with time. One week later, the poor reaction (waiting for a rescue) is another week in trouble whereas the wise reaction has enjoyed a week of recovery. In a month the businesses can be worlds apart, one savable and the other not."
0
0
7
@Lana_Avetisyan_
@morganhousel
Right, the capitalist are just sitting in thier shops watching the cash register magically fill up with money and (haha) no more payroll expense. Clearly the thoughts of someone who has never signed the front of a paycheck.
0
0
7
@andrewdsouza
@clearbanc
Yea, can you provide a LOT more detail? Finished goods only? Import or domestic sources or both? who determines MOQs, forecasting, etc. Stored where? What’s the chain of title? What about stale inventory? Suppliers get paid on same terms?
2
0
7
Honored to be invited.
The
#TMAChicagoNOW
committee invites you to join an engaging discussion with author
@jeff05251
as he shares his best practices from his book, Corporate Turnaround Artistry, Fix Any Business in 100 Days. Register here:
0
0
4
1
0
7
@joshuamschultz
“Repeat until lambo” tells you everything you need to know. Why is X 80% this?
1
0
7
Here's an indicator which is rarely covered - the Senior Loan Officer Opinion Survey on Bank Lending Practices.
2
0
7
@girdley
Most real entrepreneurs have scar tissue. As my bankruptcy attorney in New Orleans told me; "hell if you're in the oil business and don't have at least one bankruptcy, people won't take you seriously".
Twitter is the land of make believe where fakers sell hype to dreamers.
0
0
7
@privateinequity
So the plan is to increase ebitda $14 on top of $25 through operational and pricing improvements, so the rest is through growth and capacity utilization? That would move me to look at market, distribution, pricing (again), sales cycle, staff, go-to-market, etc. 4/
1
0
7