The Art and Science of Due Diligence
by Andrew J. Sherman,
Author of The AMA Handbook of Due Diligence
Due diligence is not a quest to find the deal-breakers but a test of the value proposition underlying the transaction to make sure that the inside of the house is as attractive as the outside. Once the foundation has been dissected, it can either be rebuilt around a deal that makes sense or allow the buyer to walk away and prevent the consummation of a deal that doesn't make sense.
Five Overlooked Due-Diligence Factors for Assessing the Real Market Potential of an Acquisition Target
by Jerry Vieira, CMC, President & Founder The QMP Group
Too many acquired businesses fail to meet financial and other expectations upon which their purchase was predicated. There are many reasons for this - and even more excuses. In this article we proffer five frequently overlooked areas for due-diligence - factors that could go a long way in improving pre-acquisition decision making and the probability of achieving post-acquisition performance.
Is the Economy Half Full or Half Empty?
You Be the Judge
by Gary W. Patterson
As we wind down another year my mantra still holds. As
you have seen, the volatility of a global economy will continue
to produce winners and losers. Those leaders who take direct
control of their financial destinies in an effort to fund
high-return opportunities will be the victors; those that
let the external economic forces consume them will be the
victims. The operative phrase is “take control.”
Five Strategies for Investing Properly, Cautiously, and Intelligently in This Bear Market
by Stephen T. McClellan
Beware of misleading Wall Street doubletalk, as it tempts investors into this dangerous bear market. The Street tends to discourage and even hinder proper investing. Its advice is unreliable and often contradictory. Professional insiders know better than to take the Street literally. To be an astute investor you must fathom the puzzling, strange, ambiguous ways of Wall Street that it would prefer to keep secret.
401(k) Strategies for Lean Times
by Peter Passell
Once upon a time, a monthly pension check was the standard reward for devoting decades to a single employer. Now, these sorts of "defined benefit" pensions are as rare as underpaid bank CEOs. But never mind: the 401(k) retirement savings accounts (named for a section of the Internal Revenue code) that have largely replaced them do have some advantages.
Ten Tips on Where to Put Your Money NOW
by Peter Passell
If you're like me and just about everybody I know, you lost a hefty chunk of your savings in the past year and have been too shell-shocked to revisit the scene of the crime. But duck-and-cover is not an adequate investment strategy for the long term. Some day you'll have to get back in the saddle. And the sooner you do, the more likely you'll be able to meet your savings goals.
Want to Cut Costs and Still Be Compliant?
by John Weathington
If your company is doing over $1 billion in annual revenue, you’re part of an “elite” group of organizations that have been fined an average of $80 million for each and every compliance failure. That’s right, $80 million on average for every compliance failure! Even if you’re the head of a smaller company, you may some day be handed a compliance remediation price tag in the millions. Would your company be able to survive such a hit?
A Plan to Exit your Business is Just as Important
as a Plan to Expand your Business
by Stephen Meek
Are you a business leader who’s running your own company? And have you planned your exit from your business? Odds are that you haven’t. A BDO/COMPAS poll found that fewer than half of business owners have an exit strategy in place. Yet your company may be your most important asset. And even if you have no intention of exiting for many years, having a strategy can help you determine the appropriate direction for the business.
to Improve Your Communication and Become a Marketable CFO
by Caroline Stockman
Today more than ever, successful interaction with one's Board is critical.
As I develop the concept of the 'Marketable CFO', I find that financial leaders
need not only to communicate rules and guidelines effectively but they also
need to communicate about themselves. This is the only way they will demonstrate
their competence and develop trust with the board.
Integrity in Management
by Dennis AuBuchon
The connection between Integrity and business ethics is simple. The concept of integrity involves honesty, character and truthfulness. It also involves a strict moral or ethical code and this is where the term ethics and integrity connect.
by Dennis AuBuchon
in auditing involves several aspects and each one is just as important as
another. When integrity exists in all phases of the auditing process the
result is an audit that exhibits accuracy, completeness and honesty.
Sales Order to Cash to Reorder
by Abe WalkingBear
business there exists a disconnect between what is often the largest asset
and how to best manage it to its fullest potential. Money due from customers
on the purchase of goods and services is more and more becoming the single
largest asset of many companies. A new and better understanding of how A/R
is created and managed is needed.
900 lb. Gorilla Who Wrote a Book
by Abe WalkingBear
Once, not so very long ago, there walked upon the face of the planet a juggernaut
who crushed all that got in its way. This 900 lb. gorilla had an unusual
name for a gorilla - Arthur - and it wrote a book.
by Jon Paul
Keep your business vision sharp, so you can have the information and resources you need to make smart decisions and execute them. Here are several common business “blind spots” that can put
your business at risk.
Capital: Russian Roulette for Your Business
by Andy Birol
With your friends, family and angel investors already
tapped out, venture capitalists could be your best option to get the investment
you need. Or, are they?
Expenses as Investments
by Mark MacLeod
If you approach each expense decision from the perspective
of an investment, you will automatically filter out low value (low return)
expenses and will drive overall performance (by focusing on high return expenses).
Ten Ways to Maximize the Sale Value of Your Business
by Scott Roberts
Wherever you may be in the life cycle of your business,
there are specific things you can do right now to help maximize the actual
sales value of your company down the road - however long that road may be.
Options and Restricted Stock: Microsoft's Missed Opportunity
by Dennis Aust
In an era when incentive compensation is subject to
increased shareholder scrutiny and public criticism, Microsoft missed a major
opportunity to redefine the focus of their incentive compensation program
to the fundamental factors that determine sustainable shareholder value.
Flow, Growth Money - Business Funding Beyond the Banks
by Debra Maples
The phrases, "too small," "too new," and "not enough
net worth," do not deter asset-based funders. These lenders are "proactive"
rather than "reactive" and can often help with creative structuring of deals
to accomplish the goals and needs of their clients.
by Michael L.
It is important for business professionals to be able to intelligently discuss
true value creation from a financial context. I've created an acronym as a
mnemonic to help remember how a company creates WIDER levels of value.
ABC's of CBA: Business Case and Cost Benefit Analysis
It's your responsibility to choose whether to make a $2M investment
for the company. An existing system fails often, at a cost of thousands per
hour. A proposed new system, expected to take 1 year to install, is from a
small, unknown vendor. Should you fix what you have or opt for a new system?
Your choice carries "career consequences". How do you choose?
by Paul B. Thornton
do the numbers mean? Some managers feel insecure when it comes to challenging
the numbers presented by the accountants and financial analysts. They have
made the numbers more mysterious and confusing than they really are.
Management: What is it, Really?
response to growing investor and management concerns regarding the current
accounting and finance models, the International Intangible Management Standards
Institute (IIMSI) has released 33 international intangible standards that
provide a completely new way of managing and reporting the true value of organizational
Fork in the Road to Recruiting
field of loss prevention has been changing slowly over the past several years
towards a more business oriented approach. This change has caused a definite
rethinking of the type of candidates companies want to see. The bar has now
been raised to seek professionals who are more skilled in business acumen
to adopt a more global approach to shrink reduction.
is at the Root of the "R" Word
by Bob Ferchat
& Tony Carlson
another recession - several thoughts run through our collective minds. The
cause of the economic slowdown across the broad base is psychological - activity
at the margin intensified by mass perception.
Your Inventories Under Control?
R. Michael Donovan
consultant, R. Michael Donovan says "In virtually all manufacturing companies,
there is a direct correlation between inventory levels and overall business
performance." A healthy balance sheet depends on having a quick, precise inventory
avoidance and reduction methodology.
by Michael Hoffman
An excellent overview of the business valuation process for business owners
and chief executives.
and VC Questions and Answers
What is a direct public offering, a private placement,
a collar, market maker? You need to know - and Edgar-Online has all of the
to Successfully Design & Implement an Incentive Program
by Mike Higgins,
Here is a list of 14 rules to follow in order to successfully design and implement
an incentive program in your organization.
Evils of Working Capital
by Rick Sidorowicz
It isn’t over until the fat lady sings - and I say she doesn’t sing
until you’re at zero working capital.
Buffett's Investment Checklist
The Warren Buffett criteria - what does great investment potential look like
to the master?
Intelligent investing - evaluate companies within your circle of competence.
Controls - A Matter of Trust
A company's fiscal well-being is protected by one solitary factor - honest
Topics: Corporate Boards | The