Why You Need to Analyze Your Credit Risk

Logic tells us to look at management when a company is consistently underperforming. Hindsight shows that bringing in new leaders may not solve the whole problem. CFOs, CEOs and owners need better access to critical data to make operational decisions. A study by Ernst & Young found that 62 percent of CFOs believe they contribute… Continue reading>

How World-Class Organizations Manage Debt

Most corporate finance leaders don’t see receivables data often enough or understand the significance of it. When they do, it is usually stale and non-specific to proactively analyze trends and manage any problem accounts. A study by IP consultancy The Hackett Group noted that world-class organizations are tackling this issue. They are employing sophisticated and… Continue reading>

The New Normal: Lower PE Returns and Expensive Credit

According to Moody’s, record corporate debt is coming due in the next five years. Companies that are borrowing or funding businesses through debt will need to pay close attention to debt covenants, debt ratios, cash flow from operations and interest coverage in their holdings. This concern includes portfolio companies. A recent report by the Center… Continue reading>

Top Mistakes that Cost Private Equity Firms

What mistakes are costing private equity firms? Beyond the inefficient or noncompliant collections practices we see at The Credit Department, portfolio companies are suffering due to poor operational, broker and hiring decisions. Read about these mistakes (and how to fix them) in the following articles. Read how we help equity investors.   5 Practices That… Continue reading>

Trump’s Proposed Tax Plan Affects Carried Interest

President-elect Donald Trump touted his business expertise during the 2016 presidential campaign and promised to get rid of carried interest. If this comes to fruition, what does it mean? The Credit Department found reputable and factual resources to explain how these proposed changes could affect your business and income. The tax implications are substantial: Capital… Continue reading>

2017 Business Forecasts Impact Portfolios

Each year around this time, the media reviews last year’s business trends and forecasts into the future. We found a mix of articles highlighting 2016 and 2017 business trends that can impact business value and profits. Like the recent Presidential election, these trends will defy traditional market assumptions.   Underestimated Millennials On the older end… Continue reading>