article thumbnail

Fool Me Once Or Fool Me All The Time

Martinka Consulting

On June 2, 2018 Jason Zweig’s article in the Wall Street Journal was titled, “ The Fanciful Alphabet Soup Companies Use to Fool You.” Zweig writes that any form of modified profit isn’t cash flow. I get the feeling many people, even in my industry, don’t understand the difference between profit, Ebitda, and cash flow.

article thumbnail

Strong Economy – Strong Buy-Sell Market

Martinka Consulting

Record number of small business sales in 2018! Between 35 & 45% of these owners are 65 or older (2018). Cash flow is king (they don’t require full collateralization, but will take as much as they can). Ten percent buyer down payment (minimum), which frees up cash to grow the business. Pretty small.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business

tax law is likely to increase after-tax cash flows for U.S.-based There’s a strong argument that they should invest in growth , and the newly available cash offers them a unique chance to do so. Surely there is a better use for the additional cash. The Economy in 2018. Emma Innocenti/Getty Images.

article thumbnail

Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

could become the world’s largest oil producer in 2018, surpassing Saudi Arabia and Russia. In fact, 2018 may mark the first year shale producers will be able to fund future expansions of drilling programs through their own cash flow. Analysts have predicted that U.S.

article thumbnail

Pros and Cons of Professional Employer Organizations (PEOs) Why a “Virtual PEO” May be the Better Option

Emerson Consulting Group

For example, the CEO of McBassie & Company reported in 2018 that 750,000 US companies with 3.7 Workers Compensation Insurance is – generally – easy coverage to acquire, and many carriers have cash-flow-advantageous methods of collecting premium. 1] Bassi, Laurie (September 2018). As a result, PEOs are widely used.

article thumbnail

Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

Although most governments are required to balance their budgets on a cash flow basis each fiscal year, a structural budget gap can arise when recurring expenditures are greater than recurring revenues. It is not a balance sheet test, but a cash flow test. This probably wasn’t an accident either. swaptions and the like.