An earnout is a delayed payment whereby the buyer and seller agree to a contingent payment based upon future performance criteria.
How is your investment portfolio doing? Do you have appreciated stock that you want to sell? Do you have plans to give to charities? There are many ways to express your thanks through giving. The tax code provides one vehicle you may want to consider – Donor Advised Funds and the gift of appreciated stock.… Read more »
The cash cycle incorporates the time it takes to pay for products and services from suppliers, the time products are in inventory, and the time it takes to collect from customers. Importers often have to pay for goods at the time of shipment, carry 1-2 months of inventory and wait 30-45 days to get paid. … Read more »
Working capital is a term that financial folks toss around, but its meaning may not be clear to others. Textbooks refer to working capital as the difference between current assets and current liabilities. Current assets are those that will probably convert to cash within one year. Current liabilities are those that will have to be… Read more »
Cash flow issues have been a continuous challenge for businesses. The quote below is just as relevant today as it was in 2009. “Cash flow problems are common in business, and people often have a hard time figuring out what’s behind them. But there are actually just a few potential causes: You could have too… Read more »