Entries by johnverducci

Overcome the Expected

People often ask how the wizards at Burke Capital can fix so many different kinds of companies. Maybe we’re smart or lucky, but we often improve the situation even in the rare case when we already know the business will fail. This begs the question: if we know the outcome upfront, why would we still […]

The Call

A prominent investment banker calls Burke Capital Corporation (BCC) in a panic. His longtime client, an Internet clothing retailer, is about to lose its main supplier because it is out of cash and nearly insolvent. The retailer just made an emergency cash advance to cover payroll. This is a bold move, but if the retailer runs out […]

The Bebo Story — $849 Million Later

Back Story To grow gorgeous roses, you have to step in mud. This recent project contained lots of mud (lawsuits, allegations of mismanagement and malfeasance, delinquent payroll taxes, etc.) and yet had a very happy ending. It all started when BCC was hired to mediate as Court-Appointed Receiver for Bebo.com, the once-successful social media website. […]

The Other “F” Word

The Twilight Zone – “This situation could happen” “Beyond this door is another dimension: a dimension of sound, a dimension of sight, a dimension of mind. You’re moving into a land of both shadow and substance, of things and ideas. You’ve just crossed over into…the Twilight Zone.” You’re probably wondering how “The Twilight Zone” is […]

The Call From Hell, South Dakota

“Hello, this is Chuck Smith calling. I am your new loan officer. I am with the Special Assets Group of the bank and we need to talk. Please send me your latest borrowing base and call me back right away.” Recently the CEO of a consumer products company got a disturbing telephone call, as paraphrased […]

Take Me to Your Leader

It all came down to a basic misunderstanding. The borrower thought that banks financed growth. The bank thought the borrower was “over-levered.” And so it began. For most middle-market borrowers the bank is their biggest financial partner, having often invested more actual cash in the business than the owner. But how well do banks and […]

The Turnaround

Burke Capital Corporation (BCC) was recently hired to help a troubled consumer products company reeling from three years of declining sales, increasing losses, negative net worth and a huge over-advance of its bank line. Coupled with very frustrated bankers and trade creditors, a key question was how could Burke help its client avoid a Chapter […]

Life’s Little Surprises

Tripping over a garden hose left the founder of a fifty year old family business incapacitated.  His grown children rallied to assume control, but a business downturn and inadequate management training began to impact the company.  Sales rapidly declined, the company lost money for several years, and the family struggled to cope with the new […]

Successful Sale

Burke Capital Corporation (“BCC”) recently completed a successful client project which resulted in a sale valued at 12X trailing EBITDA, the lender realizing an IRR of 30% and the retention of all employees and customers in a newly energized, growing company. We’re often asked, “How?” During the eleven month engagement, the client successfully utilized all […]