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Coronavirus & Consulting Offers

Tom Spencer

The travel and hospitality industries have been decimated, stock markets around the world have tanked, and governments struggle to combat this devil on so many fronts. If the firms don’t have a strong balance sheet, if they foresee a potential cash flow problem, or if they have clients in particularly hard hit industries, I’d be concerned.

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Due Diligence by Management Consulting Firms

Tom Spencer

The investment bankers assess current and projected future cash flows to determine how much debt they can take on, service, and pay down. Jason Oh is a management consulting enthusiast with past experience in helping F500 financial services clients with product management, go-to-market and distribution channel strategy.

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Management Consulting

CaseInterview.com

They may mix separate issues or expect that their previous strategies will work in a new market. This may involve traveling to the client’s site to collect data, interview employees, and examine daily operations. Strategy Consulting Perhaps the most lucrative role that management consulting offers is strategy consulting.

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Fool Me Once Or Fool Me All The Time

Martinka Consulting

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. Owner “perks” like cell phone, car, travel to conferences, etc. (as For more, just Google the terms Warren Buffet and Ebitda.

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Don’t Drive (Your Business) Over the Curb

Martinka Consulting

Owners travel a road every day and their road has curbs. It’s tough managing 50 people instead of 15 or handling cash flow at a level beyond what the line of credit allows for. The wider the road the better. Last month I wrote about customer concentration, a dangerous curb that significantly narrows the road (decreases value).

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Fraud or Just Marketing

Martinka Consulting

What this means is the owner’s salary, medical insurance, cell phone, car, travel, and more are added to profit because these items are “discretionary” not necessary. Banks factor in a salary figure before they determine cash flow for debt coverage. Rarely is anything straightforward.

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Getting the Deal Done recap

Martinka Consulting

In other words, you can’t just pull a number from air and say, “I’ll pay X times EBITDA (or free cash flow, aka profit) for a business. Rather than the usual talk about best practices (nothing wrong with those talks) this talk was definitely from the heart, not the head.