Monthly Archives: August 2013

Business Metrics-Cash Projections

There is no single business metric that is crucial to every business nor every industry.

Most metrics are historical measures of ratios and relationships that the business deems critical to their success.  The metrics may be financial but more often are measurements of volume or utilization of employees.   In service industries metrics often focus on utilization of the billable personnel and billable hours versus paid hours. …

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Posted in CASH - We help you get it®

The Exit Strategy Handbook – Potential Buyers

We are exploring the recently released book, “The Exit Strategy Handbook” by Jerry Mills, the founder and managing partner of B2B CFO®.   Some owners have identified a strong potential buyer for their company when they near retirement, but others will need to find the right buyer(s).

Jerry Mills spells out some of the most common buyers in “The Exit Strategy Handbook”:

  • Strategic buyers, such as a competitor, customer or supplier
  • A investor who sees a financial opportunity
  • Management Buyouts
  • Family members
  • Employee Stock Option Plan (ESOP)
  • Private equity groups, sometimes referred to as PEGs
  • Initial Public Offering or IPO[1]

Each buyer type has advantages and disadvantages. …

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Posted in Exit Strategies, Other

The Exit Strategy Handbook – Why should I follow this series?

This is the first blog in a series that focuses on the recently released book, “The Exit Strategy Handbook”.  The book was written by Jerry Mills, the founder and managing partner of B2B CFO®.

Jerry Mills published “The Exit Strategy Handbook” because there is a literal tsunami of small business sale transactions coming over the next decade. …

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Posted in Exit Strategies, Other

Increasing Profitability – Managing Selling General and Administrative Costs

Many people think of this area of a company as overhead.  While there is truth in that thought, few companies can survive without an investment in sales staff and administrative support personnel.

Measurement is the key to controlling costs in these areas.  If you measure a cost you will have greater visibility to the spending components.   …

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Posted in Other

Increase Profitability – Financing Costs

Financing costs fall into multiple categories:  straight interest paid on a recurring basis to a lender, the amortization of up-front points and fees incurred to obtain financing, and preferred stock dividends which must be paid out or accumulated.  The up-front costs are typically amortized over the life of the debt and are a non-cash expense after the initial outlay.    …

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