CICA/RBC Business Monitor Economic Results Overview

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "CICA/RBC Business Monitor Economic Results Overview"

Transcription

1

2 CICA/RBC Business Monitor Economic Results Overview

3 Optimism Is Near 2007 Highs 100% 80% 60% Economic Optimism Company Optimism 40% 20% 0% Q Q Q Q Q Q Q Q Q Q Q Q1 2010

4 Key Metric Projections Continue To Improve 7 % 5 % Profits Revenue Employees 3 % 1 % -1 % Q Q Q Q Q Q Q Q Q Q Q Q % -5 % -7 %

5 Financing Options for Financing Business Options Transition for Business Transition presented by JOHN LIDDY Managing Director, Financial Advisory Services RBC Royal Bank

6 Introduction - Business Succession Planning 54% of Canadian business owners plan to exit their businesses within 10 years (Business Banking Board) 46% 54%

7 Business Succession - Common Exit Strategies Family Succession/Transition Selling to a Partner Selling to a Third Party

8 Business Succession - Common Exit Strategies Family Succession/Transition: Requires as much advance planning as possible. Should start at least five years ahead. All members of the family should be involved in the planning. Prepare the next generation to ensure an effective transition. Gradual transition approach provides continuity in operations and financial stability. Structure is a challenge if there will be a cash payment ultimately from the business. The key concerns are liquidity and leverage (including debt servicing). Evaluate liquidity of the business to support this strategy in the short and longer term.

9 Business Succession - Common Exit Strategies Selling to a Partner or Management: Benefits from inside knowledge of the operation, lowering risk of failure May require the vendor to provide some ongoing support as the buyer may not have sufficient personal equity for an outright purchase With proper planning and time, it is possible to structure an agreement to support the purchase over a longer time frame Option to bring in an investor as a partner/senior role to eventually purchase your interests

10 Business Succession - Common Exit Strategies Selling to a Third Party: Prepare well in advance at least five years Get the business positioned for sale: Improve cash flow Overhead and SG&A expenses Eliminate non-essential costs if it does not add to cash flow then stop doing it. Sell/dispose non-core or non-productive assets Review tax strategies For existing operations: Are there any opportunities to increase after tax income? For the future purchaser: Are there any strategies which could be currently implemented which would make the company more attractive?

11 Business Succession - Common Exit Strategies Selling to a Third Party: Prepare a pitch book about the business. Business & Financial history Current Profile Customers, suppliers Employee relations (union?) Production Product lines R&D Premises Share with current FI no surprises Consider potential buyers: Customers, suppliers, competitors Professional networks Business brokers

12 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers:

13 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Strategic Buyers:

14 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Strategic Buyers:

15 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Strategic Buyers: Interested in businesses that fit their long-range growth plans:

16 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products

17 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability

18 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share

19 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share

20 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share

21 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share

22 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Market opportunities Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share

23 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Market opportunities Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share Key decision factors include:

24 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Market opportunities Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share Key decision factors include: How does this support their business growth plan

25 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Market opportunities Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share Key decision factors include: How does this support their business growth plan Historical earnings

26 Business Succession- Common Exit Strategies Selling to a Third Party: Two Types of Buyers Financial Buyers: Interested in the earnings of the business Key decision factors include: Financial performance Growth potential Market opportunities Strategic Buyers: Interested in businesses that fit their long-range growth plans: New market for products Expanded distribution capability Increases market share Key decision factors include: How does this support their business growth plan Historical earnings Benefits from economies of scale

27 Financing Business Succession

28 Business Succession What is it? Business Succession Planning is the process of preparing to hand over control of the business to others in a way that is the least disruptive to the business s operations and value Business Succession refers to the orderly transfer of ownership of a business entity Such transfer of ownership most commonly occurs in one of two ways: the assets of the company are sold ( asset sale ) the shares in the company are sold ( share sale )

29 Business Succession Either or both parties would dictate the structure (asset vs share) for various reasons but the top three are: 1. Liability: a) Following a sale of shares, the seller loses his connection with the company. The company itself continues to exist and, in particular, liabilities (hidden or otherwise) continue as liabilities of the new owners. b) When only the assets are sold, the seller retains responsibility for settling the liabilities of the company.

30 Business Succession 2. Cost and Complexity: 3. Tax: Ownership of shares is transferred through a share purchase agreement. In an asset sale, each separate asset must be transferred, which can result in complications (e.g. third party consents). Some vendors prefer share sales as there could be a tax advantage. In Canada, if the seller s shares are "qualified small business corporation shares" they can claim a tax exemption up to $750,000 on the gain of the sale which is not available to the corporation if it sells the assets.

31 Business Succession Financing a Business Succession There are a number of ways to effect a transfer of ownership, and various sources of capital available, most common of which are: 1. Cash Equity which may be sourced from existing cash or liquid investments, or through equity in existing assets (e.g. house, company or investment real estate) 2. Senior Secured Debt provided by a bank 3. Vendor Financing provided by the seller of the business in the form of a take back note. These notes are typically contractual settled over a defined period of time and may include: 1. Earn-out: the vendor of the business is paid out over a period of time based on a percentage of annual profits

32 Business Succession Financing a Business Succession con t 2. Fixed payment terms: the purchaser pays a stipulated amount of money over a defined time period regardless of the fortunes of the business. 4. Leveraged / Management Buy-Out (LBO / MBO) or High Leverage Transactions (HLT) result from the acquisition of a majority of a target company s equity through the use of borrowed money. This structure results in a high ratio of debt to equity, beyond industry norms

33 Business Succession Acquisition Using Senior Secured Debt Senior Debt has priority over all other classes of debt and equity It is usually secured with a first rank charge on the assets It also implies the debt leverage is within conventional lending practices Sufficient lending value exists within the pledged asset base to fully secure the proposed debt Loan margins should follow industry practices e.g. 75% AR, 50% Inventory Term/Amortization tends to be five years or less, although there are exceptions on a case-by-case basis

34 Business Succession Vendor Financing Vendor take-back financing (VTB): the seller agrees to finance part or all of the transaction The VTB terms usually include a second charge on the assets, ranking after the Bank Senior Secured Debt When the VTB is formally postponed to the bank, it is usually treated as equity for balance sheet leverage tests, however it is considered debt if it pays cash interest for debt service covenant (DSC) calculations If the DSC is below the covenant due to cash interest payments, consider using PIK (Payment In Kind additional shares, warrants, discounted bonds) For some or all interest payments Until the FI no longer requires the postponement As a mechanism, if a loan default occurs, to continue interest payments without breaching additional covenants The purchaser would be expected to provide the material amount of equity

35 Business Succession Cash Flow Implications All successful entrepreneurs are very good at one or two things, although finance is not usually one of them. It is not uncommon for the small commercial business owner to measure how they are doing by the amount of cash in the current account. Their perception of working capital is generally similar but there are differences from our approach.

36 Client s Perception of Working Capital INFLOWS Collections Trade Credit (extended A/P) Discounted A/R Inventory Sales Investment Income Loan Draws DRAGS Uncollected Receivables Obsolete Inventory Low Investment Rates Tight Credit C A S H OUTFLOWS Disbursements Payroll Payments Taxes Loan Payments Dividends Investments PULLS Early Payments Shortened Credit Limits Limited Credit Lines Low Liquidity

37 Business Succession Cash Flow Implications Many fail to understand how the purchase or sale of a business can effect cash flow. The sale of a business will give rise to one time expenses ( transaction costs ) such as legal, tax, accounting, financing, etc. Normally, transaction costs are estimated, however they are usually underestimated. It is important to be aware of and prepared for the potential for material cash flow disruption. The following will illustrate the impact of transaction costs

38 Free Cash Flow to Shareholders Business Succession Pre LBO Cash Flow Run Rate } Transaction costs: legal, accounting, distracted management etc New Run Rate Cash Flow Transaction Event Integration Fully Completed Time Time

39 Terms & Conditions

40 Business Succession Terms and Conditions: A. Security: Typical security would include one or more of the following: a) GSA; b) Fixed/Floating Debenture or Moveable/Immoveable Hypothec (Quebec), c) Personal or Corporate Guarantees; d) Postponement of Claims, e) Chattel Mortgage, f) Collateral Mortgage g) Relevant to the transaction

41 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth Debt Service Coverage Current Ratio Fixed Charge Coverage Funded Debt to EBITDA

42 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth < 2.50 : 1

43 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth < 2.50 : 1 Debt Service Coverage > 1.35 : 1

44 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth < 2.50 : 1 Debt Service Coverage > 1.35 : 1 Current Ratio > 1.10 : 1

45 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth < 2.50 : 1 Debt Service Coverage > 1.35 : 1 Current Ratio > 1.10 : 1 Fixed Charge Coverage > 1.20 : 1

46 Business Succession Covenants : Typical key considerations for determining if acquisition financing qualifies for senior debt are the following ratios (calculated after taking into account the impact of the acquisition): Total Liabilities to Tangible Net Worth < 2.50 : 1 Debt Service Coverage > 1.35 : 1 Current Ratio > 1.10 : 1 Fixed Charge Coverage > 1.20 : 1 Funded Debt to EBITDA < 2.75 : 1

47 Business Succession Covenants : Covenants are intended to set boundaries within which both parties are comfortable They are not intended to interfere with the normal course of business The likelihood of reality following projections is around zero Covenant levels should be tested against forecasts, using several scenarios (good, bad and worse) which could identify future problems Any problems should be addressed with the FI in advance no surprises and could result in temporary relief

48 Business Succession: Debt Covenants Integration Period D/E Forecasted / Planed / Expected Max D/E Actual Normal D/E Transaction Event Integration Fully Completed

49 Business Succession Due Diligence

50 Business Succession Purchase Price The amount paid to acquire the business has a direct bearing on the ability to successfully operate the business post acquisition. In all cases, the valuation should be known and a Sources & Uses should be provided to the FI. Sources Uses Senior Bank Debt $10,000,000 Working Capital Assets $12,000,000 VTB $2,000,000 BV LT Assets $1,000,000 Equity $5,000,000 Goodwill $4,000,000 Total $17,000,000 Total $17,000,000

51 Purchase Price Business Succession Security Value vs. Enterprise Value Enterprise Value ( EV ) represents the entire economic value of a business. EV may be established through a business valuation, or may be equal to the sale price negotiated in an arms length succession based acquisition. Most often, the EV will exceed the net asset value of the business, with the difference comprising goodwill. For Senior Secured Debt transactions, loan amounts should be based on the actual confirmed values of the tangible assets of the business (not the enterprise value). Where shortfalls exist, refer to alternative Bank, such as Cash Flow or Mezzanine Term Loans or non-bank (e.g. EDC subdebt) solutions.

52 Business Succession Purchase Terms Purchase terms (i.e. all cash, combination of cash and shares, earn out provisions, amount of vendor financing) should be known as this influences the amount and type of financing to be provided. A purchase which calls for fixed vendor payments to be made regardless of company earnings carries a higher degree of default risk for a lender. A review of the major terms and conditions of the transaction (including the contents of the Purchase Agreement), representations and warranties by the vendor, and any due diligence reports completed by the professional advisors to the acquirer should be reviewed by the FI to ensure the transaction is understood and that the financing structure will not unintentionally create a default.

53 Business Succession Cash Flows: The cash flow of the acquired company must be adequate to cover operations (including regular capital expenditure requirements) as well as service all debt obligations with a sufficient buffer to account for unexpected events. A lender will not be overly reliant on forecasts and anticipated synergies in making its lending decision. Established supporting historical cash flows should be evident along with an expectation of continued performance. The cash flow forecast assumptions should provide a clear link between prior & post.

54 Business Succession Debt: When determining appropriate debt levels and lending products, consideration for how levels and repayment structures of debt could negatively affect the company s ability to: operate grow compete resulting in reduced financial flexibility. These issues should be addressed in the Company s business plan, failing which, clarification should be sought.

55 Business Succession Historical Financial Performance Three years worth of historic financial information for both the acquirer (if applicable) and target company should be reviewed. The historic financial information should be examined to ascertain : trends in sales growth and margins and the reasons; the extent to which the business is cyclical; requirements for capital expenditures or research and development expenditures; the extent to which costs are fixed or variable with sales. This analysis is geared to substantiating a case for the amount of total debt being contemplated.

56 Business Succession Financial Projections The projections (balance sheet, income statement, and cash flows) provided should be critically evaluated, with an overall emphasis to determine whether the forecasts appear credible. A sensitivity analysis should always be undertaken to gauge the impact of the key variables and if the assumptions are not met. Key sensitivities would include: reduction in sales growth exclusion of margin improvements or synergies increase in interest rates seasonality should be considered to accurately forecast the peak borrowing requirement and interest charges.

57 Business Succession Management: The potential impact on the business of a change of management should be considered. The new ownership and management should be able to demonstrate their managerial and operational qualifications both relative to the previous management and the business needs. Lending appetite should take into consideration: The relative experience of the new management team. In circumstances where new management has been deemed satisfactory, but lacks certain existing management traits, less leverage would be preferred.

58 Business Succession Management con t Management should be asked how they would respond to any downturn in demand, recession, or other factor that might produce a divergence between actual and planned performance. The current owner s ongoing role in the company may impact lending appetite. New management would not know everything Contract length Non-compete Licences, patents, trademarks, etc. The impact on cash flow of the management contract should be taken into consideration when establishing lending terms.

59 Questions?

for Analysing Listed Private Equity Companies

for Analysing Listed Private Equity Companies 8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.

More information

Agenda. Traditional Financing

Agenda. Traditional Financing Traditional Financing This session explores the traditional financing options that are available to allow you to build value in your business while you prepare for your exit 1 Agenda Benefits of Debt Types

More information

CHAPTER 17. Financial Management

CHAPTER 17. Financial Management CHAPTER 17 Financial Management Chapter Summary: Key Concepts The Role of the Financial Manager Financial managers Risk-return trade-off Executives who develop and implement their firm s financial plan

More information

3. Seasonal or cyclical working capital to finance the temporary cash shortfalls due to the nature of the firm s normal business cycle.

3. Seasonal or cyclical working capital to finance the temporary cash shortfalls due to the nature of the firm s normal business cycle. 11.437 Financing Community Economic Development Class 5: Working Capital Financing I. Three different meanings of term working capital 1. Excess of current assets over current liabilities 2. Firm's investment

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

Understanding A Firm s Financial Statements

Understanding A Firm s Financial Statements CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,

More information

Financing a New Venture

Financing a New Venture Financing a New Venture A Canadian Innovation Centre How-To Guide 1 Financing a new venture New ventures require financing to fund growth Forms of financing include equity (personal, family & friends,

More information

3/22/2011. Financing an ESOP Transaction. Table of Contents. I. The Leveraged ESOP Transaction. John L. Miscione Managing Director

3/22/2011. Financing an ESOP Transaction. Table of Contents. I. The Leveraged ESOP Transaction. John L. Miscione Managing Director Presented by John L. Miscione Managing Director Table of Contents I. The Leveraged ESOP Transaction II. ESOP Tax Benefits III. Debt Capacity IV. Financing Markets and Terms V. The Lender s Perspective

More information

A PRACTICAL GUIDE TO PRIVATE EQUITY FUNDING FOR COMPANIES SEEKING INVESTMENT

A PRACTICAL GUIDE TO PRIVATE EQUITY FUNDING FOR COMPANIES SEEKING INVESTMENT A PRACTICAL GUIDE TO PRIVATE EQUITY FUNDING FOR COMPANIES SEEKING INVESTMENT A COURTESY GUIDE PREPARED BY SWAAB ATTORNEYS 2014 Overview of Private Equity To put it simply, a private equity fund generally

More information

gyb Growing your business TM

gyb Growing your business TM Private Company Services gyb Growing your business TM Volume 62 2010 Financing the future: Strategies for accessing capital Companies that want to grow, whether organically or by acquisition, need capital.

More information

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

Borrowing Money for Your Business

Borrowing Money for Your Business Borrowing Money for Your Business After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional funding. Borrowing money is one of

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

More information

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle

9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no

More information

Subordinate Financing

Subordinate Financing Subordinate Financing A strategic alternative for your growth capital requirement Business Development Bank of Canada Overview Financial institution owned by the Government of Canada Report to Minister

More information

Enterprise Ireland. Finance 4 Growth Sourcing External Funding. June 2012

Enterprise Ireland. Finance 4 Growth Sourcing External Funding. June 2012 Enterprise Ireland Finance 4 Growth Sourcing External Funding June 2012 Cormac Mohan FM Accountants & Business Advisers cmohan@fmaccountants.ie www.fmaccountants.ie Agenda / Contents : Introduction Cash

More information

BUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE

BUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE BUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca A COMMON GOAL AND COMMON UNDERSTANDINGS Agreed: Our common

More information

Sankaty Advisors, LLC

Sankaty Advisors, LLC Middle Market Overview March 2013 Overview of Middle Market We view the middle market as having three distinct segments, defined by a company's ownership type, prospects, and access to capital. Companies

More information

SMALL BUSINESS DEVELOPMENT CENTER RM. 032

SMALL BUSINESS DEVELOPMENT CENTER RM. 032 SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey

More information

So You Want to Borrow Money to Start a Business?

So You Want to Borrow Money to Start a Business? So You Want to Borrow Money to Start a Business? M any small business owners cannot understand why a lending institution would refuse to lend them money. Others have no trouble getting money, but they

More information

Dealing With Your Banker &

Dealing With Your Banker & Dealing With Your Banker & Other Lenders Your financing The success or failure of your business will depend on whether or not you have enough capital to: buy the equipment and inventory you need; pay overhead

More information

CPA MOCK Evaluation Finance Elective Page 1

CPA MOCK Evaluation Finance Elective Page 1 CPA MOCK Evaluation Finance Elective Page 1 ELECTIVE (FINANCE)- Elective examinations will be 3 hours in length. Candidates will be given 4 hours to complete the examination, providing an extra hour to

More information

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY

CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE. *Advisor USE ONLY CORPORATE RETIREMENT STRATEGY ADVISOR GUIDE *Advisor USE ONLY TABLE OF CONTENTS Introduction to the corporate retirement strategy...2 Identify the opportunity - target markets... 3 Policy ownership: corporate

More information

ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5

ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements. Fall 2015 Comp Week 5 ACCOUNTING III Cash Flow Statement & Linking the 3 Financial Statements Fall 2015 Comp Week 5 CODE: CA$H Administrative Stuff Send an email to trentnelson@college.harvard.edu if you have not been added

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small

More information

Financial Statement Analysis in Mergers and Acquisitions. Howard E. Johnson, MBA, CA, CMA, CBV, CPA, CFA. Campbell Valuation Partners Limited

Financial Statement Analysis in Mergers and Acquisitions. Howard E. Johnson, MBA, CA, CMA, CBV, CPA, CFA. Campbell Valuation Partners Limited - 1 - Financial Statement Analysis in Mergers and Acquisitions Howard E. Johnson, MBA, CA, CMA, CBV, CPA, CFA Campbell Valuation Partners Limited Overview Financial statement analysis is fundamental to

More information

The City of Lawrence Metro E-Community Revolving Loan Fund Glossary

The City of Lawrence Metro E-Community Revolving Loan Fund Glossary Ability to pay: (Financial capacity) Borrower s capacity to make good on loan obligation. Administrative Support Organization/ Underwriter: responsible for creating loan documents, closing loans, UCC or

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

Vermont Employee Ownership Center. Sixth Annual Employee Ownership Conference. Financing an ESOP. Burlington, VT June 6, 2008

Vermont Employee Ownership Center. Sixth Annual Employee Ownership Conference. Financing an ESOP. Burlington, VT June 6, 2008 Vermont Employee Ownership Center Sixth Annual Employee Ownership Conference Financing an ESOP Burlington, VT June 6, 2008 Copyright 2008 by SES Advisors, Inc. All rights reserved. Program Agenda Basic

More information

Short-Term Financial Planning

Short-Term Financial Planning 1 Key Concepts and Skills 2 Short-Term Financial Planning Be able to compute the operating and cash cycles and understand why they are important Understand the essentials of short-term financial planning

More information

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

More information

Business Succession Planning With ESOPs

Business Succession Planning With ESOPs acumen insight Business Succession Planning With ESOPs Presented by Alan Taylor, CPA Partner ideas attention reach expertise depth agility talent Disclaimer Information contained herein is of a general

More information

18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS

18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS APPROVED by Resolution No. 11 of 27 October 2004 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS

More information

Buy-Sell Agreement Planning Checklist

Buy-Sell Agreement Planning Checklist Buy-Sell Agreement Planning Checklist The Buy-Sell Agreement 1 Whenever a corporation has more than one shareholder, it is commonly recommended that the shareholders enter into a buy-sell agreement to

More information

BUYING OUT A PARTNER: A CHECKLIST OF ISSUES TO CONSIDER

BUYING OUT A PARTNER: A CHECKLIST OF ISSUES TO CONSIDER BUYING OUT A PARTNER: A CHECKLIST OF ISSUES TO CONSIDER Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca All business partnerships end eventually. If nothing else, death or retirement

More information

Marketing Software and Web Developer with Clients Nationwide

Marketing Software and Web Developer with Clients Nationwide Marketing Software and Web Developer with Clients Nationwide This web-development, marketing, and software company, founded in 2000, has developed a loyal, long-term client base, who appreciates its excellent

More information

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Cash Management How and Why Businesses Need to Manage their Cash AS & A2 Business Studies PowerPoint Presentations 2005 Importance of Cash (1) A business can exist for a while without making profits but

More information

Note on Leveraged Buyouts

Note on Leveraged Buyouts Note on Leveraged Buyouts Introduction A leveraged buyout, or LBO, is an acquisition of a company or division of another company financed with a substantial portion of borrowed funds. In the 1980s, LBO

More information

Financial Guidelines for Long-Term Care Home Licensing Applications

Financial Guidelines for Long-Term Care Home Licensing Applications Financial Guidelines for Long-Term Care Home Licensing Applications Performance Improvement and Compliance Branch, Ministry of Health and Long-Term Care Revised: June 2015 Table of Contents Introduction...

More information

Understanding Business Valuations

Understanding Business Valuations Understanding Business Valuations SBA America East Conference August 1, 2012 Neal Patel, CBA Reliant Business Valuation Abridged Slides: Email neal@reliantvalue.com for full presentation Appraiser s Professional

More information

Meet challenges head on

Meet challenges head on Meet challenges head on Deal Advisory / Global We can help you master Financial Restructuring. Enhancing value through financial restructuring. / 1 Your vision. Our proven capabilities. Despite its challenges,

More information

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL Webinar Series Date: March 5, 2012 Presented by: Hetal Engineer, SunTrust VP hetal.engineer@suntrust.com

More information

Fundamental analysis

Fundamental analysis Fundamental analysis 2 June 2016 CERN Finance Club c.laner@cern.ch Introduction Let s cover the two main types of investment analysis used in traditional investing Today: Fundamental analysis Next time:

More information

Use this section to learn more about business loans and specific financial products that might be right for your company.

Use this section to learn more about business loans and specific financial products that might be right for your company. Types of Financing Use this section to learn more about business loans and specific financial products that might be right for your company. Revolving Line Of Credit Revolving lines of credit are the most

More information

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

More information

How Do I Qualify for a loan?

How Do I Qualify for a loan? How Do I Qualify for a loan? Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is

More information

CASH MANAGEMENT & FINANCING CHOICES THE DEBT MARKET

CASH MANAGEMENT & FINANCING CHOICES THE DEBT MARKET CASH MANAGEMENT & FINANCING CHOICES THE DEBT MARKET Lesson 6&7 Castellanza, 21 st October 4 th November2015 LESSON5: EXAMPLEN 2 Compute the cash source / cash use prospect and the cash flow statement of

More information

ARCH CAPITAL ADVISORS

ARCH CAPITAL ADVISORS ARCH CAPITAL ADVISORS TERM SHEET Mezzanine Debt This term sheet does not constitute an offer and is solely for discussion purposes. This term sheet shall not be construed as creating any obligations on

More information

Essential Learning for CTP Candidates TEXPO Conference 2016 Session #03

Essential Learning for CTP Candidates TEXPO Conference 2016 Session #03 TEXPO Conference 2016: Essential Learning for CTP Candidates Session #3 (Mon.1:45 3:00 pm) Overview of Basic CTP Math from ETM4 Chap 07: Earnings Credits Chap 09: Working Capital Chap 18: Fin. Statements

More information

A client guide to business valuation engagements and reports.

A client guide to business valuation engagements and reports. A client guide to business valuation engagements and reports. Disclaimer This guide is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting

More information

JOSEPH PALMER & SONS PROPERTY FUND ARSN

JOSEPH PALMER & SONS PROPERTY FUND ARSN JOSEPH PALMER & SONS PROPERTY FUND ARSN 133 409 382 INFORMATION ON THE KEY RISKS AND FEATURES OF THE JOSEPH PALMER & SONS PROPERTY FUND 19 DECEMBER 2013 INTRODUCTION The Australian Securities and Investments

More information

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute Other free books by BizMove that may interest you: Free starting a business books Free management skills

More information

Syndicated Revenue Loans. Secured Lines of Credit

Syndicated Revenue Loans. Secured Lines of Credit Syndicated Revenue Loans. Syndicated Revenue Loans are Revenue loans grouped together through a syndicate. Typically these loans are given while a revenue loan is still outstanding, but the business owner

More information

S Corp. vs. C Corp. Valuation (Revised 12-20-02)

S Corp. vs. C Corp. Valuation (Revised 12-20-02) Web: www.businessvaluexpress.com Mike Adhikari Email: info@businessvaluexpress.com Adhikari International, Inc. Phone: 847-438-1657 175 Olde Half Day Rd., Suite 100 Fax: 847-438-1835 Lincolnshire IL 60069

More information

Real Estate & Mortgage Investment Specialists

Real Estate & Mortgage Investment Specialists Your Real Estate & Mortgage Investment Specialists Private Lending FAQ s 1. Why Should I Invest In A Mortgage? A mortgage is a loan in which real estate or property is used as collateral. When an individual

More information

Overview of Financial Solutions

Overview of Financial Solutions Overview of Financial Solutions The Etra Advisory Group provides solutions to businesses for growth, expansion, cash flow, refinance and acquisition. We cover the world of business financing that banks

More information

FINANCING OPTIONS AVAILABLE TO ASSET AND WEALTH MANAGERS IN THE CONTEXT OF M&A AND SUCCESSION PLANNING

FINANCING OPTIONS AVAILABLE TO ASSET AND WEALTH MANAGERS IN THE CONTEXT OF M&A AND SUCCESSION PLANNING FINANCING OPTIONS AVAILABLE TO ASSET AND WEALTH MANAGERS IN THE CONTEXT OF M&A AND SUCCESSION PLANNING Overview Prior to the Great Recession of 2008-2009, and for the past few years, M&A transactions were

More information

Analyzing the Statement of Cash Flows

Analyzing the Statement of Cash Flows NACM Central Region Credit Conference 2012 Analyzing the Statement of Cash Flows John A. Jaeger, CCE Manager Credit & Accounts Receivable Follett Higher Education Group 1 1 Analyzing the Statement of Cash

More information

RMA Commercial & Business Banking

RMA Commercial & Business Banking RMA Commercial & Business Banking The Commercial Real Estate Lending Decision Process The Commercial Real Estate Lending Decision Process, authored by The Risk Management Association and brought to you

More information

Grooming Your Business for Sale

Grooming Your Business for Sale PRIVATE COMPANIES Grooming Your Business for Sale Plan for the Future but Be Prepared for the Unexpected KPMG ENTERPRISE 2 Grooming Your Business for Sale Grooming Your Business for Sale Plan for the Future

More information

Working with your banker

Working with your banker Working with your banker Business CoaCH series How the system works What your bank expects of you How to maintain a banker-friendly relationship Business Coach series Getting support when you need it The

More information

NOTE ON LOAN CAPITAL MARKETS

NOTE ON LOAN CAPITAL MARKETS The structure and use of loan products Most businesses use one or more loan products. A company may have a syndicated loan, backstop, line of credit, standby letter of credit, bridge loan, mortgage, or

More information

HEWLETT- PACKARD Management Acceleration Program. BUILDING BUSINESS ACUMEN Terminology

HEWLETT- PACKARD Management Acceleration Program. BUILDING BUSINESS ACUMEN Terminology HEWLETT- PACKARD Management Acceleration Program BUILDING BUSINESS ACUMEN Terminology CASH DEFINITIONS: 1. Cash is the total amount of all cash and near-cash on hand at any given point in time, such as

More information

Seller Expectations Summary Same Page

Seller Expectations Summary Same Page Seller Expectations Seller Expectations Summary Same Page Motivation Tired of working / burned out Purpose Meet retirement goals Options Internal Sale, ESOP, Strategic Buyer, Individual Buyer Ideal Prospect

More information

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE December 2013 Acknowledgments This guide and supporting tools were developed by Julie

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information. 0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

More information

Module 1: Corporate Finance and the Role of Venture Capital Financing TABLE OF CONTENTS

Module 1: Corporate Finance and the Role of Venture Capital Financing TABLE OF CONTENTS 1.0 ALTERNATIVE SOURCES OF FINANCE Module 1: Corporate Finance and the Role of Venture Capital Financing Alternative Sources of Finance TABLE OF CONTENTS 1.1 Short-Term Debt (Short-Term Loans, Line of

More information

Chapter 4: Liquor Store Business Valuation

Chapter 4: Liquor Store Business Valuation Chapter 4: Liquor Store Business Valuation In this section, we will utilize three approaches to valuing a liquor store. These approaches are the: (1) cost (asset based), (2) market, and (3) income approach.

More information

QUARTERLY REPORT 2015

QUARTERLY REPORT 2015 15 3 Consolidated balance sheet 5 Consolidated income statement 6 Statement of changes in equity 7 Condensed notes 3 Consolidated financial statements Consolidated balance sheet ASSETS 31.12.2014 in %

More information

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt

Understanding a Firm s Different Financing Options. A Closer Look at Equity vs. Debt Understanding a Firm s Different Financing Options A Closer Look at Equity vs. Debt Financing Options: A Closer Look at Equity vs. Debt Business owners who seek financing face a fundamental choice: should

More information

Guide to managing liquidity risk

Guide to managing liquidity risk Guide to managing liquidity risk CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies representing more than 129,000 members of the financial, accounting and business profession

More information

Funding Your Business

Funding Your Business Page 12 County of Bucks Community Services Division Lynn T. Bush, Executive Director and County Chief Clerk Community and Business Development Department Vitor A. Vicente, Director Neshaminy Manor Center

More information

UNDERSTANDING FINANCE AND MEMBER EQUITY MY EXPERIENCE AGENDA

UNDERSTANDING FINANCE AND MEMBER EQUITY MY EXPERIENCE AGENDA UNDERSTANDING FINANCE AND MEMBER EQUITY A Special Presentation for the Strengthening Cooperation Workshop February 21, 2006 by Brian Henehan Senior Extension Associate Cornell Cooperative Enterprise Program

More information

RAPID REVIEW Chapter Content

RAPID REVIEW Chapter Content RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

More information

Xynergy Commercial Capital LLC

Xynergy Commercial Capital LLC Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay

More information

INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015

INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 INTERIM FINANCIAL STATEMENT AS PER 30 SEPTEMBER 2015 15 3 Consolidated balance sheet 5 Consolidated income statement 6 Statement of changes in equity 7 Condensed notes INTERIM FINANCIAL STATEMENT AS PER

More information

Chapter 7: Cash & Receivables L7 (pg 399 436)

Chapter 7: Cash & Receivables L7 (pg 399 436) Chapter 7: Cash & Receivables L7 (pg 399 436) UNDERSTANDING CASH AND ACCOUNTS RECEIVABLE How Do Companies Manage and Control Cash? Cash flow budgets help anticipate cash needs and minimize borrowing requirements

More information

RATIO ANALYSIS FORMULAS + THEORIES

RATIO ANALYSIS FORMULAS + THEORIES A) Cash Position Ratio : - 1) Absolute Cash Ratio = Cash Reservoir Current Liabilities 2) Cash Position to Total asset Ratio = Cash Reservoir * 100 (Measure liquid layer of assets) Total Assets 3) Interval

More information

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL Webinar Series Date: September 4, 2012 Presented by: Hetal Engineer, SunTrust VP

More information

performance of a company?

performance of a company? How to deal with questions on assessing the performance of a company? (Relevant to ATE Paper 7 Advanced Accounting) Dr. M H Ho This article provides guidance for candidates in dealing with examination

More information

Understanding Cash Flow Statements

Understanding Cash Flow Statements Understanding Cash Flow Statements 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Components and Format of the Cash Flow Statement... 3 3. The

More information

Valuing the Business

Valuing the Business Valuing the Business 1. Introduction After deciding to buy or sell a business, the subject of "how much" becomes important. Determining the value of a business is one of the most difficult aspects of any

More information

Financial Statements

Financial Statements Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare

More information

Insufficient Cash On Hand A Frequent Reason For Needing A Business Loan

Insufficient Cash On Hand A Frequent Reason For Needing A Business Loan Insufficient Cash On Hand A Frequent Reason For Needing A Business Loan 2 Cash flow is cash into or out of a business When cash inflows exceed cash outflows, it is generally indicative of good financial

More information

PROCUREMENT GUIDE: CHP FINANCING

PROCUREMENT GUIDE: CHP FINANCING PROCUREMENT GUIDE: CHP FINANCING 1. Overview The decision of whether and how to finance a CHP system is a critical step in the development of a CHP project. CHP systems require an initial investment to

More information

Course 4: Managing Cash Flow

Course 4: Managing Cash Flow Excellence in Financial Management Course 4: Managing Cash Flow Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides an introduction to cash flow management. This course is recommended for 2

More information

UNDERSTANDING WHERE YOU STAND. A Simple Guide to Your Company s Financial Statements

UNDERSTANDING WHERE YOU STAND. A Simple Guide to Your Company s Financial Statements UNDERSTANDING WHERE YOU STAND A Simple Guide to Your Company s Financial Statements Contents INTRODUCTION One statement cannot diagnose your company s financial health. Put several statements together

More information

SMALL BUSINESS OWNER S HANDBOOK

SMALL BUSINESS OWNER S HANDBOOK SMALL BUSINESS OWNER S HANDBOOK PART II: FINANCIAL PLANNING FOR SMALL BUSINESSES Introduction Financial Planning Methods of Financing Your Business Other Types of Funds & Financing How to Approach Lenders

More information

BUSINESS PLANS. . The best part of this is that it is free!

BUSINESS PLANS. . The best part of this is that it is free! BUSINESS PLANS A business plan is absolutely essential to the creation of a new business entity as well as the continued profitable operation of an established business. The conduct of a business in the

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS 1 Agenda Welcome, Pre-Test, Agenda, and Learning Objectives Benefits of Financial Management Budgeting Bookkeeping Financial Statements Business Financing Key

More information

CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY

CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY CHAPTER 2: THE CANADIAN SECURITIES INDUSTRY Topic One: Industry Overview 1. Self-regulatory Organizations (SROs). A. The SROs set rules that govern the operations of investment dealers and market activity.

More information

5-STEP CHECKLIST: QUESTIONS TO ASK WHEN BUYING A BUSINESS

5-STEP CHECKLIST: QUESTIONS TO ASK WHEN BUYING A BUSINESS 5-STEP CHECKLIST: QUESTIONS TO ASK WHEN BUYING A BUSINESS 5-Step Checklist: Questions to Ask When Buying a Business As a prospective buyer, you should spend sufficient time investigating a business before

More information

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:

Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used: Financial Ratios Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios

More information

Accounting Cheat Sheet

Accounting Cheat Sheet DIAGRAM OF TACCOUNTS Assets = Balance Sheet as of 12/31/20 Liabilit ies + = + Equity METHODS & ORGS Accrual basis Follows the matching principle and recognizes transactions as they occur (GAAP Method)

More information

The State of the Corporate Banking Industry 2008 2009 Banking Industry Crisis Andrew Cardimen, Senior Vice President Middle Market Corporate Banking Harris Bank, N.A. 1 The 2008 2009 Credit Crisis 2 ~8,300

More information

Leveraged Buyout Model Quick Reference

Leveraged Buyout Model Quick Reference Leveraged Buyout (LBO) Model Overview A leveraged buyout model shows what happens when a private equity firm acquires a company using a combination of equity (cash) and debt, and then sells it in 3-5 years.

More information

A PRACTICAL GUIDE TO BUYING AND SELLING A BUSINESS

A PRACTICAL GUIDE TO BUYING AND SELLING A BUSINESS A PRACTICAL GUIDE TO BUYING AND SELLING A BUSINESS A COURTESY GUIDE PREPARED BY SWAAB ATTORNEYS 2014 Overview of the acquisition process TIMETABLE > Identify target / Invitation to tender > Initial investigation

More information

Analyzing Cash Flows. April 2013

Analyzing Cash Flows. April 2013 Analyzing Cash Flows April 2013 Overview Introductions Importance of cash flow in underwriting decisions Key attributes to calculating cash flow Where to obtain information to calculate cash flows Considerations

More information

Solutions to Chapter 3. Accounting and Finance

Solutions to Chapter 3. Accounting and Finance Solutions to Chapter 3 Accounting and Finance 1. Sophie s Sofas Liabilities & Assets Shareholders Equity Cash $ 10,000 Accounts payable $ 17,000 Accounts receivable 22,000 Long-term debt 170,000 Inventory

More information

Practice Bulletin No. 2

Practice Bulletin No. 2 Practice Bulletin No. 2 INTERNATIONAL GLOSSARY OF BUSINESS VALUATION TERMS To enhance and sustain the quality of business valuations for the benefit of the profession and its clientele, the below identified

More information