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I want to shed light on the SBA 7 (a) option for buying or selling a business. The SBA does not loan money, instead they guarantee the loans that participating lenders make. Most banks have an SBA division, so your […]

When folks ask me what is the catalyst that determines business value I respond, “cash flow.” Then I explain that cash flow is synonymous with EBITDA. That’s when I usually receive one of two responses 1) the recipients’ response and […]

One of the most puzzling aspects about running a business, selling a business or buying a business is determining how much working capital the business needs to operate efficiently and effectively. Good management of working capital is a critical aspect […]

Here are some steps you can take to address and mitigate high working capital needs:Analyze the situation Identify the specific factors contributing to the high working capital requirements, such as slow accounts receivable turnover, excessive inventory levels, or fast payables […]

A recent consumer price index rose 8.2% from a year earlier. The last time inflation in the US was this persistent was more than 40 years ago. This has many folks wondering how inflation and its companion—rising interest rates will […]

Working capital and working capital requirements are closely related concepts in finance and business management – they are interlinked yet distinct.Working capital is a metric to determine a company’s liquidity cash, cash equivalents and other current assets a business has […]

An insider’s perspective:All certified valuations, including those prepared for the Small Business Administration “SBA”, are prepared using generally accepted valuation standards and methods. But SBA valuations must also adhere to SBA SOP 50 10 (7).1. This 400+ page document is […]

As a CPA/Business Appraiser folks often ask me about the value of intangible assets including goodwill which is often referred to as “Blue Sky.” Questions like how do you value intangibles and what intangible asset is the most important? My […]

In a previous article we discussed how net working capital depicts whether a business has enough liquid assets on hand i.e., current assets to pay for expenses that are coming due soon i.e., current liabilities. If a company has more […]