This is the Spreadsheet Supplement for Walker Insurance: Paul Thomson (HBS Case 813057). Includes Exhibit 1a, Exhibit 1b, Exhibit 2, Exhibit 4, Exhibit 5, Exhibit 6, and Exhibit 7.

The funded search model is one alternative for individuals who, at some point in their career, want to run their own companies. This note looks at the funded search, as a means to entrepreneurship through acquisition and describes the path to buy and run a business using debt and equity as a means of financing the purchase. While applicable to an early career choice, many of the process steps are applicable to unfunded searches at later stages of a career.

The effective manager and leader understands and appreciates trust at both the personal and the organizational levels. Most managers focus more on being trusted than on trusting. The best way to be trusted is to be worthy of trust-to be trustworthy.

Having just acquired Walker Insurance, Paul Thomson finds himself short of funds to support his original turnaround plan. He can request additional cash from his investor group, hunker down and grow at a slower rate or consider a proposal to buy his business. He has taken steps to re-virtualize the company and is challenged to build a salesforce to grow the business.

Jacob Zimmermann has seen his revenues and profits declining for the last three years after MegaRols entered his local market and has reduced sales of his Rolex watch offerings in his Midwestern retail store. Bonne Chance has been selected by Swatch to offer their line, which may be an opportunity to revive sales during the upcoming Holiday season and into 2011. The bank loan officer has covered the recent overdraft, but she won't extend more credit. Already behind on some older invoices, cash is very tight, Zimmermann has thirty days to come up with the first payment for stocking the Swatch inventory. He has a number of options to boost sales and liquidate inventory to cover his upcoming purchases of non-Rolex inventory items. Each has an impact on his cash flow and has to be carefully assessed against the reaction from his long time customers Rolex and MegaRols.

The Thompsons have fulfilled their dream of running their own business, but after two years continue to borrow money from their parents, and are facing an angry landlord looking for back rent. Opening a 2nd location in a more prosperous mall seems to have helped revenues, but they are facing high year end inventory levels necessitating markdowns and reflecting the risks of the "fashion" oriented children's retail clothing business. Having their own business had put a strain in their lives and relations with their family. Her parents provided initial and ongoing funding and their son, a lawyer, has voiced his concern about the local attorney's competence, who was suggesting they consider bankruptcy. As they face the peak Christmas season, they realize that they may lose their "dream child" and are not sure if it is the way they are running the business, the financial reports or their locations.

Supplements the (A) Case, 813043 Deborah Denenberg reflects on the results and actions taken during the 12 months following her first 6 months on the job.

Eric Weston is struggling to keep his garden supply business alive. Revenues are up slightly from last year but profits are down in a poor economy as he attempts to integrate an expensive recent acquisition. The deal he struck with the old owner restricts a number of his options and the banker has turned the loan over to the workout division. He feels that his suppliers are willing to work with him and his employees depend on him for their livelihood. At the banks request, an outside consultant has been brought in to make their recommendations. He has made personal guarantees to the bank, loan payments to the old owner are about to come due and Weston is faced with some unanticipated expenses. The company's cash situation is very tight and he is forced to evaluate the liquidation value of the company as he considers the actions to take to avoid failing in his dream to have his own business. The case is a rewritten version of a previous case 899-212, updating the dates and financial data to 2012 timeframe.

Looking back at five years of losses, Rivka Belzer, a newly minted MBA, steps into her family owned business with their mandate to turn it around or close it. In her first six months, she has made a number of changes, with mixed results, but is beginning to show a profit. Many strategic, organizational, marketing, control, and operational decisions lie ahead as she plans for the next year and tries to manage a difficult board of directors in the challenging entertainment industry.

Peter Jepsen, a newly minted MBA, has bought a furniture hardware manufacturing business utilizing debt and investors equity that in a very short time is about to trigger bank covenants due to poor financial performance. The prior owner continues to be involved in the business, handling key customers and expecting a healthy earn-out and some favorable transaction closing adjustments and Jepsen considers the wisdom of having him involved. Further, he has discovered an illegal practice to avoid customs duties that has been going on for years and condoned by the owner. He has taken steps to bring on new hires and outsource to reduce costs, but the faltering economy is lowering his revenues. He has to decide how to manage his banking relationships, the caliber of staff he needs and react to the declining revenue while maintaining the confidence of his board.

Quick reference guide of various terms related to the United States Bankruptcy Code. Outline of some of the important technical terms related to the bankruptcy process in the United States. Covers both Chapter 7 and Chapter 11 with a brief definition of both and a summary of the legal process. Bankruptcy terms related to the US Bankruptcy Code.

Provides an overview of bankruptcy procedures in U.S. courts and a framework for evaluating the different sources of uncertainty and their implications for various stakeholders of the firm when attempting a reorganization with creditors or considering opening a court-supervised reorganization under Chapter 11 of the Bankruptcy Code. Recent data on filings is presented as well as a summary of the hierarchy of claims and outline of bankruptcy events. While the stigma associated with bankruptcy for executives and boards of directors has diminished, companies can use the threat of a voluntary bankruptcy as a bargaining tool to negotiate with creditors.