A common thread among so many businesses we meet is that they struggle to forecast their cash flow. I’m not going to use all the clichés about cash – we can agree it is vital. We can also agree that it is never static.… Read More
Business owners we run into frequently complain that they are “not making enough money” or that they “don’t make as much money as they used to.” It seems to frequently happen by surprise, with no obvious culprits. Most of the time, this does not happen overnight.… Read More
For most small businesses, it is extremely difficult to go it alone with capital, and as a result, those same businesses have debt – for equipment, real estate, working capital or a combination therein.
Unfortunately, many of these same business owners find it challenging at times to obtain the financing they need. … Read More
For the majority of business owners, the ultimate realization of their efforts and investment in building their company occurs when they exit. That path however, can be much more challenging than most first time sellers know. Multiple studies have shown that around one-third of all negotiated small business transactions actually close, including only half of those that reach an LOI phase. … Read More
Cash is king, nothing new there. In times of economic disruption especially, there are some silent killers relative to cash that every business needs to be on the lookout for and mindful of the potential effects. When we talk about cash conversion, what that means is how well a business is converting inventory (for businesses that have it), and accounts receivable into cash.… Read More
It seems one cannot get through a day without hearing or seeing an ad for the tax credits that you may be eligible for. I’ve received two voicemails and four emails regarding our firm’s eligibility just within the last week. This is of course promoting the Employee Retention Credit.… Read More
Many companies find themselves with unexpected amounts of cash on hand as a result of PPP funds, stronger financial results and reduced spending over the last 12-18 months. While on the surface, that is an enviable position, many CEOs are struggling with the best decisions related to that cash, especially as there is still so much uncertainty in the global economy.… Read More
There are a lot of words to describe the current economic environment, uncertain is one of them. And while many companies may not be seeking new financing in the near term, there are a number of reasons a business owner and its lender will be having conversations soon if not already – 1) a renewal of an existing loan 2) terms were modified as a result of COVID-19 impact 3) quarterly or annual covenant or other performance requirements.… Read More
The Payroll Protection Program (PPP) has provided a lifeline to assist businesses through the economic confines caused by the COVID-19 pandemic. For many small businesses, confusion has been constant with respect to loan status, forgiveness and how to manage the loans once they are funded. … Read More
One of the primary challenges we see in working with growing small and midsize businesses is managing cash. The simple reality is growth can burn cash, so a healthy P&L can accompany poor cash flow. Businesses don’t fail when they lose money, they fail when they literally cannot pay their bills – and even when utilizing outside capital such as equity partners and banks, without properly managing cash, long term viability in a growth mode can be very difficult.… Read More
