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Any suggestions for Radsworthy? 300-400 words Diamond Tires Ltd3 Chad Radsworthy, general partner of Long Shot Capital, sighed as his ears popped. The plane had

Any suggestions for Radsworthy? 300-400 words

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Diamond Tires Ltd3 Chad Radsworthy, general partner of Long Shot Capital, sighed as his ears popped. The plane had started its descent to the Changchun Longjia International Airport and in a few hours, he would be meeting with the CEO of Diamond Tires, one of Long Shot's largest investments in China and, until recently, one of its most promising. Radsworthy had recommended that his firm take a minority position through a Private Investment in a Public Entity (PIPE) into publicly traded Diamond Tires, a major maker of automobile and truck tires in China, although he worried about the firm's lack of a CFO. The controller, Yu Shengli, "should have been changed out long ago and is woefully out of his depth in a company that is growing at this rate and suddenly has both private and public investors," Radsworthy had written in the Investment Recommendation he presented to his partners. In the year since the investment closed, Radsworthy had made upgrading the controller a theme of his weekly conversations with Jing Chen, the CEO, whose family owned a majority share of the operation. His suggestions had been received politely but there had been no movement. The month before, though, Diamond Tires had released its fourth quarter results late. The market had been given no warning of the delay, nor of the surprise that those results would contain: the company's revenues and margins had dropped 12%. Unsurprisingly, Diamond Tires' stock price fell 25% overnight. The Long Shot partnership meeting that followed had focused on the need for Radsworthy to perform a controller-ectomy and find a real CFO fast. Even before the results debacle, Radsworthy had been working on the problem. Unable to obtain timely results on the phone, he had flown to Changchun and started talking to members of the management team informally. Late one night, he had finally learned the secret of the controller's seemingly Teflon existence: Yu was a member of the local committee of the Communist Party of China (CPC), the CEO's distant cousin, and a former provincial table tennis champion. "Basically, he has a position for life," said Radsworthy's informant. "Until he gets arrested or run over by a truck, you're going to have to deal with this guy. You won't get a CFO in there because it would be too much of a loss of face." On returning to the U.S. after that trip, Radsworthy had met with some Chinese friends for their insights on resolving this issue. They had counseled patience and time to win Jing's trust, and isolating Yu "where he could do no harm" while recruiting talented support staff that could perform the duties he could not. Now, though, the luxury of time had evaporated. Radsworthy had to prove to his partners, his LPs, and the market that he had the situation under control. As Radsworthy gathered his baggage and met the company driver, he tried to gather his thoughts. How could he salvage his investment without savaging the controller's reputation, and, by extension, that of the company founder? "Why," he muttered to himself, "can't business just be business

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