Most turnarounds involve making tough decisions about the portfolio of businesses. We spend a lot of time looking at each business within a company and how we think its value can be maximized. We're suspicious of management saying they can fix everything.
The ideal turnaround CEO is in the first-time CEO, between the ages of 48 and 52. They have 25 to 30 years of experience, but have never had a number one spot. They're seeking out a challenge, have everything to prove, and while they've surely done very well probably haven't yet had the huge payday, [...]
The primary reason to invest in a turnaround is when you're able to invest in great management at value prices. The best people are attracted to a challenge, but the fact that it's a challenge keeps valuations in line early on. Wall Street tends not to believe something is turning until it's fairly obvious, which [...]