About to break bank covenants, Peter Jepsen has to deal with a contentious prior owner, improve profitability and staff appropriately all while maintaining credibility with his investors, in the furniture hardware company he has owned for less than a year. 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.