Remove Banking Remove Cash Flow Remove Consulting Remove Finance
article thumbnail

Asset Management – Valuation (Part 2 of 4)

Tom Spencer

There are a couple of reasons for this: Asset managers can see cash flow and earnings fluctuate wildly with markets. For alternative asset managers such as hedge funds, their cash flows may be cut by more than half as profits fall and they collect a smaller fee from their profit participation agreements.

article thumbnail

Transitioning from Management Consulting to Corporate Strategy/M&A – the Interview Process

Tom Spencer

Many management consultants hardly complete two or three years in their jobs before they realize that there’s more to life than consulting. Some consultants leave for personal reasons, because they want to start a family or spend more time with their loved ones. Interviews. Corporate Strategy. What is corporate strategy?

Insiders

Sign Up for our Newsletter

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

article thumbnail

Which MBAs Make More: Consultants or Small-Business Owners?

Harvard Business

Also, as we explained in an earlier article , we believe that being an established CEO of a small firm involves much less angst than being a senior member of a consulting, investment banking, or private equity firm. million EBITDA company for 4x paying $6 million and using 50% debt financing.

article thumbnail

SBA Acquisition Loans – A Win-Win-Win Especially for the Seller

Martinka Consulting

Pre-Great Recession - banks competed for business acquisition loans and I remember one client’s summary that had eight banks, eight approvals, seven banks using the SBA loan guarantee program (called SBA loans from now on) and my client took the non-SBA offer. Buyers, banks and especially sellers! Who benefits?

article thumbnail

Strong Economy – Strong Buy-Sell Market

Martinka Consulting

Sixty percent of them delayed their exit by at least two years, as per a study by Sun Trust Bank. It’s not reckless money like it was 15 years ago but financing options abound, including for lower middle market and below sized deals. Cash flow is king (they don’t require full collateralization, but will take as much as they can).

article thumbnail

Forget Startups – Buy a Business

Martinka Consulting

I like their line, “If you’re merely keeping the lights on, then you have a boss: the bank.” It’s faster, cheaper, and easier to finance. You trade your capital for immediate cash flow, i.e. you get a paycheck on payday just like everybody else. Be ready to add value–even to a successful business.

article thumbnail

The 5 Growing Pains of Service-Based Businesses in 2023 (and how to overcome them)

Asamby Consulting

Work with contractors To get over that initial cash-flow issue, it can make sense to rely on contractors instead of employees. Build some cash reserves If you intend to grow your service-based business by bringing on employees, you'll need some runway for that. It's chasing your own tail.

How To 52