Regent files bankruptcy

[Bengalsfan]

I figured we'd get to the root of the problem eventually.  Part of your job as the manager is to not put a company in a position like this.  Granted, nobody knew the economy would tank like it did, however we also knew that the days of shine and roses would not last forever.  When you over extend yourself, like these guys did, you leave yourself vulnerable in times like these.  With that said, I ask again, why would the new owners keep the old managment team in place?  If you don't learn from the past you are destined to repeat the same mistakes.

[Uncas]

This is not just an issue for "radio".

I think if you had some experience outside radio or even follow reorganizations in various industries, you will see that often financial buyers make this decision about current management. In fact, often it was the management that found the financial buyer.

You usually get a different result with strategic buyers, buyers who have industry experience and their own management team. They often look for the "synergies" which usually means consolidating management and other jobs.

[TheBigA]

With that said, I ask again, why would the new owners keep the old managment team in place?  If you don't learn from the past you are destined to repeat the same mistakes.

They're not going to make the same mistakes because they don't have the money or the power.  That part has been taken out of their hands.  Everything now has to go through the investors.  However, no one knows the company better than these people.  The investment folks who now own a big chunk don't know radio or the business.  They just know they want their money.  If you wipe out top management and bring in new folks, there's a whole re-education process that has to happen, and it takes a long time.  I've seen it happen a lot.  That re-education can be costly as a company tries to find its way out of bankruptcy.

[Silkie]

With that said, I ask again, why would the new owners keep the old managment team in place?  If you don't learn from the past you are destined to repeat the same mistakes.

They're not going to make the same mistakes because they don't have the money or the power.  That part has been taken out of their hands.  Everything now has to go through the investors.  However, no one knows the company better than these people.  The investment folks who now own a big chunk don't know radio or the business.  They just know they want their money.  If you wipe out top management and bring in new folks, there's a whole re-education process that has to happen, and it takes a long time.  I've seen it happen a lot.  That re-education can be costly as a company tries to find its way out of bankruptcy.

Training people is also expensive, and if you have someone who is a bad apple anyway, it's probably better to just force them to do it all exactly as they have been, so that the knots can be untangled - and there is always someone or somebody paying attention, even if it does not seem that they understand how it all went down to take them down.