This follows up on my March 23 post about valuing businesses in hard times. A broker who attended called me today and pointed out something that I should have made much clearer.
His question was: how do you value a business that generates a fair salary to the owner manager and enough cash to pay off [...]
Carried interest, or carry, is a share of the profits of a successful partnership paid to the manager (general partner) of a private equity or hedge fund. Carried interests are management incentive compensation to maximize performance. Carried interest allocations are in addition to investments the manager may have in the fund. As such, carried interest [...]
I recently made a presentation to a group of area business brokers and accountants discussing the captioned subject. I thought you might be interested in the presentation outlines, which boil down to one thing: Cash is King!
1. Cash Is King!
A. Cash flow to equity (CFE) is the REAL bottom line for business owners
B. Because businesses [...]
In the good old days that ended in the fourth quarter of 2008, financial forecasting was a lot easier, particularly as far as company debt was concerned. Financial statement footnotes or loan documents disclosed debt repayment schedules. I entered those into my spreadsheet model. If more cash was needed, I increased the amount of debt [...]
Yesterday I attended an informal meeting of a local group of matrimonial attorneys who practice “collaborative divorce”. This is a non-litigious process (the attorneys sign agreements that state that, if the parties fail to settle, the attorneys will not be involved in subsequent litigation) aimed at minimizing the anguish, cost, and time involved in resolving [...]
