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As I sit at my desk waiting with baited breath for the start of the traditional September Interim Management busy season I can’t help but think what a strange year it has been so far….
Banks have started lending in relatively small amounts and only to organisations who can already afford it, the broad sheets would have us believe that the green shoots are growing one day but then (ensuring to stay on the fence) predict a “W” recovery the next, the FTSE is rallying far more quickly than many of the analysts would have predicted and apparently the recession is over because we have won the Ashes !!
My question is, what do Interim Managers think September will bring for the Interim community and what are your experiences in what has proved to be a difficult year so far?
Mark Kitchen is Head of the Construction and Support Services Practice of Interim Partners.
September 4th, 2009 at 6:19 pm
September – much the same as the rest of the year I suspect. Well run businesses have risen to the challenge and will continue to perform well. The problem businesses are where the opportunities lie, but we are suffering two problems:-
1 – The banks are sitting on the problems and not making decisions – they can only do this for so long, and must start to work through the problems at some stage. The question of course is when. We all thought it would have happened by now, but it hasn’t.
2 – Poorly run businesses have as always cut the costs mindlessly without understanding the consequences. Historically as the stuff finally hit the fan they would call in an Interim. The trouble now is that most are so hard up against their facilities that they will fall into the hands on the banks – hence see number 1 above.
That said, there really does appear to be more around in the week, lets just hope that it is not the latent demand from a slow holiday period, or we are all headed for a Christmas without the Turkey.
September 17th, 2009 at 8:32 am
Jon, Thank you for your comments.
I agree with your point 1, however, quite recently we have seen an increase in activity from the major banks in relation to supporting companies that are close to breaching their covenants. It appears that the banks are not acting as quickly as the last downturn and perhaps they feel that they are helping companies in distress by allowing them to recover by themselves (or maybe a breach equals additional fees!!).
My experience so far in September is positive, there seams to be a “thawing out” of projects and programmes and there is certainly activity in the merger, buy out and JV areas within Facilities Management and Construction, this can only lead to large change and integration programmes which I feel is our specialist area of expertise.
If all else fails and the Interim Management market doesnt improve by November I am thinking of launching a special offer within my sector, hire one interim and get a turkey !!