Inattention to EBITDA can lead to weak balance sheets and hobble your company’s growth. But a single-minded focus on maximizing EBITDA at all costs can do just as much damage. In the end, not all EBITDA is good EBITDA, so create yours wisely.
Overly focusing on revenue ignores other factors that can mean the difference between success and failure. Making the change to obsess on an EBITDA-based performance metric is a powerful way to improve your profits and valuation.
Another downturn is ahead, maybe a year away, maybe five. Could you lead your midsized firm through a liquidity crisis? Read how one firm survived an 83% drop in revenues and lived.
Taking your balance sheet and income statements for the past four years (or for any past set of periods) and putting them in common size format is a fast track to analyzing changes in your financial conditions. There is just no way you can look at standard financial statements and see the same thing as quickly.
I had 22 venture capitalists around the table last week and the discussion was quite interesting. We focused on how early stage Israeli VCs can work with American VCs for the B round and beyond.
Staying focused on the business plan is often as hard as crafting a great plan in the first place.
Forecasts can make CEOs look really stupid at the end of the year. This Forbes.com article addresses the situation and offers solutions.
When a mid-market company is in need of a transfusion of cash, nothing else seems to matter. This article looks at the high cost of a cash crash. It also addresses some best practices best implemented long before trouble arises that will minimize the pain and give you a better chance to survive.
It’s the rare business that never faces a cash crunch. For most companies, whether privately held or publicly funded, the problem will arise sooner or later. Here’s how to respond when it does.
Most business people have a suspicious, if not adversarial, attitude toward their banks. This is both unnecessary and unwise. Richard L. Whitsell, President and CEO of Legacy Bank, explains banking from the banker’s point of view, providing insights on improving your financial relationships.
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).