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To so many people, finance seems to be a very complicated subject. In reality, the basic concepts are not that hard to grasp, and once you understand the basics, financial products and topics are much easier to understand.
The problem is that most financial types don’t speak plain English.. They tend to rely on jargon and buzzwords that only those who deal with finance on a daily basis are familiar with and understand. Fortunately, Michael Fischer has set up a website that has many short and easy to understand videos that explain an impressive array of financial topics. Best of all, Michael explains the subject in plain English. Watch the video below, which explains the concept of financial leverage, and see if you don’t agree.
Continue reading «Finance Made Easy – Website Review»
This post was written by my good friend, George Walden II, a principal in the Houston office of Corporate Finance Associates. George has extensive experience as a middle-market investment banker, having successfully completed more than thirty transactions worth over $150 million.
George is an excellent source of realistic yet practical advice on corporate finance. So read on to learn what George has to say about capitalization in these difficult economic times.
During the last period of economic boom many companies expanded through debt financing. The logic was if one machine is making money then adding three machines will make three times the money. As long as the economy was strong and margins remained high this was viewed as good thinking. After all, even if the economy dropped, the value of the equipment, even leveraged, would be equity that could be used to raise capital in a downturn.
Continue reading «Now is Not the Time to Be Under-Capitalized»
   I have noticed that it is not uncommon to hear the terms, Financial Manager, Vice President of Finance, Controller, Treasurer and Chief Financial Officer used interchangeably, as though each term means the same thing.
   In reality, Financial Manager, VP-Finance and CFO encompass the same activities, and these activities tend to be broader in scope than the activities of the Treasurer and Controller.
    Therefore, I thought it would be helpful to give you a brief description of the duties of the Financial Management function and how such duties are divided.  For simplicity, the term “CFO” will also mean Financial Manager and VP-Finance.
Continue reading «Financial Manager, Controller & Treasurer»
The ultimate goal of proper financial management is to ensure that your company has the maximum value possible when the time comes to sell. However, you should not wait until you want to sell your company before you do a valuation. Just as a periodic due diligence review helps you identify where your processes [...]
You know that you should obtain a valuation of your company when you decide to sell your business. However, proper financial management dictates that you obtain a valuation of your company at other times as well. For example, you want to get a value when you set up an equity sharing plan, transfer stock, [...]
Every day, technology becomes a more integral part of our lives. As the technology gurus find even more ways to automate daily tasks, either with new, compact hardware or a sophisticated software program, I am seeing more requests for funding to develop and commercialize a new technology. Such requests are often referred to as [...]
Over the years, many companies have asked me to help them obtain financing for their company. Often, a shortage of cash to pay vendors or meet payroll was the first indicator that they needed to borrow. Sadly, by the time some companies realize they need a line of credit, their financial condition makes them ineligible for [...]
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