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Small Business Techniques

ESOP Appraised Valuations: Fabulous or Fables?

ESOP Appraised Valuations: Fabulous or Fables?

Recently the US Department of Labor acted to rein in overly-optimistic valuations of company ESOP plans, because overstating the value of the company’s shares unfairly limits the number of shares allocated to employees. Such valuations also inflate the value of the owner’s holdings. Why should we care? Because we want to treat employees fairly and […]

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Maximize the Price for Your Business

Maximize the Price for Your Business

Selling a business is a mating dance. To attract a mate, you the seller must make the business appear as attractive as possible. Fair or not, potential mates and potential buyers both make their initial screening in about two minutes. Buyers are at least as smart as you are! They have evaluated many businesses, and […]

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Raising Price – What’s the Best Way?

Raising Price – What’s the Best Way?

“It costs a little more, but it’s worth it.” How can you get your customers to say that when you raise your price? The quickest way to raise profits is to raise price, if you do it right, so this is worth thinking about. The goal is to keep all your customers. Even if you […]

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Financing a Turnaround

Financing a Turnaround

The turnaround’s Catch-22 is that you need funds to make changes and get some breathing room for those changes to generate more cash, but the need arises just when cash flow is becoming critical and there are no extra funds. What can you do? Classic Sources Classic turnarounds rely on cash from quick moves, lender agreement […]

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Restructuring Alternatives

Restructuring Alternatives

Like the chess player contemplating his first move, owners have the most options when they recognize a cash flow problem early, before events conspire to limit their choices. Because early recognition provides extra time to solve the problem, initiatives that take a little longer to affect cash are still feasible. “Early” is the time for […]

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Firing Customers

Firing Customers

Turnarounds are triggered by cash shortage, so everything that drains cash is up for discussion. There are no sacred cows. When you’re looking for near-term cash relief, the toolbox includes lots of old favorites: cut overhead, cut labor, stop capital spending, renegotiate supplier and lending contracts, increase prices, and find new investors. But sometimes you […]

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