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Why did its capital structure need to be “restructured” (i.e., what led to Cenveo’s stress that required action to be taken)?

Category: History Paper Type: Online Exam | Quiz | Test Reference: N/A Words: 160

        There were several issues that arose due to acquisitions that had recently taken place. The company was used to acquiring companies for moving into new industries, so the fact worked here and there were a lot of acquisitions that were to be considered hasty decisions on the end of the company.

Were there industry pressures or company specific headwinds?

        As there were more competitors moving into this industries, and several of them were quite successful as well, so the company needed to diversify, and it has been its history that acquisition had been the medium of this diversification.

Were there any “triggers” or upcoming “triggers” you can identify?

        The depletion of cash flow is the greatest indicator, to restore it to full bloom, the company took on a lot of debt. More debt meant more interest, and there was not enough capital available. This increase in debt was the trigger that made the company file bankruptcy.

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