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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

In recent weeks, a trip to the region and further research into China’s shadow banking system have convinced us that China is approaching its “Minsky Moment,” which increases the chances of a disorderly unwind of China’s excesses. Based on our analysis, our baseline case is that China may slow from the current level of 7.7%

Finance 75
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The 5 Growing Pains of Service-Based Businesses in 2023 (and how to overcome them)

Asamby Consulting

You manage expectations well right from the start. 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.

How To 52
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Improve Business with Technology!

Women in Consulting

Go To Meeting – Go To Meeting allows you to easily work with anyone, anywhere by providing web conferencing and online meeting tools. eFile Cabinet – eFile Cabinet is the very best solution in electronic document management and paperless office software. Financial Management. Never email a file again!

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$550 Billion Energy Junk Bond Bubble Busts; "Whac-A-Mole" Distortions in Multiple Markets

MishTalk

Energy production is extremely capital intense, and often accompanied by negative free cash flow. Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. Junk bonds of Energy XXI Ltd. cents since September.

Energy 78
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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?

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Unrealistic Expectations – Part II – Gotcha!

Martinka Consulting

In the past I’ve written about how low interest rates and bank using the SBA guarantee program and its low down payment requirements plus a 10-year amortization have caused buyers to pay more for businesses than they would have years ago (because their payments are the same or less). Many banks will go as low as 1.25:1

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Getting Your Deal Done

Martinka Consulting

I told him we would not meet in person until he talked to his wife about it. Business sellers please make it easy on your buyer, the bank, and your intermediary. On our first call I asked what his wife thought about it and was told they hadn’t discussed it. On our second call I asked again and got the same answer. Guess what?