Maximizing Business Value before the Sale

As a business owner your financial future is directly related to the success of your company. In turn, the success of your company is most often measured in terms of profitability, specifically Earnings Before Interest, Tax and Depreciation and Amortization (“EBITDA”), which drives the potential sale value of the Company.

Strategies to Look For in Dealing with Your Client’s A/R Portfolio

Strategies to look for in dealing with your client’s A/R portfolio, the most difficult working capital component to manage.

The goal is obvious, keep working capital positive.  The issue rests in that a company can somewhat control its Accounts Payable disbursements, but controlling its current assets (Cash, Account Receivable and Inventory) is significantly more difficult.  Most often a company can quickly gauge inventory issues and exposure, sometimes ...Read Full Story

The Silo Approach in Commercial Real Estate Loans

Over the past decade, commercial real estate (CRE) lending saw significant growth as financial institutions competed vigorously for new loan and fee originations. As average projects, borrowers, and relationships grew larger, CRE loans became increasingly complex, and each new project often incorporated multifaceted legal structures involving numerous entities.

Is a Field Audit Program Adequate Fraud Protection?

The losses lenders experience at the hands of dishonest borrowers can be a very large proportion of the total loans outstanding, and can monopolize a significant amount of lender time. The use of field exams and other financial reviews can help to identify problems at an early stage, therby allowing the lender time to protects

Choose the Best Partner for Real Estate Receiverships

The downturn in the commercial real estate market has had a severe impact on lenders, investors and developers alike. According to the Federal Reserve, default rates on commercial real estate loans skyrocketed to 8.79% at the end of the second quarter of 2010, up from a low point of 1.02% in 2Q 2006.

The Financial Risk in a Borrower’s Capital Structure

During the five years prior to the recent economic downturn, private equity (PE) firms were active in deploying funds to acquire controlling interests in Corporate America. This boom time for PE firm acquisition activity was fuelled in part by the ready access of PE firms to debt.

Why are Dairy Clients Surfacing in Bank Workout Portfolios?

Commodity price volatility in recent years has meant that making ends meet on the dairy farm has become a challenge. During 2009, low milk prices coupled with high feed costs created serious cash flow shortages and a resulting inability of many dairy operators to service existing debt structures. As a result, many farmers were left to wonder if they could weather the margin compression long ...Read Full Story

Restructuring CRE Loans in a Community Development District

Lenders, their borrowers, and other interested parties in development projects are faced with multiple loans that require an overall restructuring of the underlying real estate development project. This article will explore the restructuring question as it relates to real estate projects that include a Community Development District (“CDD”) in their capital structure.

Community Development District (CDD) Defaults Bad and Getting Worse

out of the approximately $5.6 billion in CDD bonds outstanding, during 2009 the number of bonds either failing to make interest payments or drawing from their debt service reserves (which triggers a technical default) rose from $1.7 billion in May 2009 to $2.4 billion in November 2009.

Confronting Cost Realities: U.S. Manufacturing Can Be Competitive

In this extensive look into U.S. manufacturing, Focus Management Group’s Richard Hersher delves into the true costs – both standard and hidden – associated with offshore manufacturing. Through case studies and analysis, Hersher makes the case that the outcome of producing products domestically can be a profitable one.