DSCR is the Debt Service Cover Ratio required by bankers… typically when they are ‘cash’ lending for an MBO, acquisition etc They want to make sure a company’s annual Cash Flow can cover its annual Debt repayments… and they add a little bit on for comfort So… let’s play numbers If a company has £100k Debt […]
CFADS is a measure of a company’s Cash Flow Available for Debt Servicing… and it matters because Bankers like it… so if you’re looking at an MBO or going on an acquisition spree chances are your bankers will look at your CFADS to see if they want to come along… Calculating your CFADS… and how […]
I’m seeing an increasing appetite among bankers to fund an MBO… which is a great thing all round. Owners get to sell all or part of their holdings and realise value… to people who know the company well and are seriously committed to making sure it survives and thrives Bankers get to fund a team […]
Innovation is one of the best drivers of growth for an owner managed business… and luckily the Government really does get it… offering some bonkersly brilliant and accessible help that actually works for companies like yours… As a form of Corporate Welfare (which I’m generally against) these innovation-orientated tax breaks and grants rather surprisingly do what […]
I’m currently helping someone sell their business to a huuuuge perfect-fit buyer who popped up out of the blue with a great life-changing offer… BUT … and there has to be one… … the buyer doesn’t want the company… they just want to buy selected assets… OOOPS Below I go into the pros & cons of selling […]
I like to think this blog is for scale-up owner managed businesses… so here’s a few aspects of finance further up the food chain that may be useful to know as your capital requirements change as you grow… And since I like to give a few ‘insights & angles’ I’d rather not list all the […]
I never liked auditing… but I like audits Way I see it there are only two reasons not to have an one… cost & hassle… but here’s a few thoughts on why having an audit can be a good thing Credit Ratings… … the agencies love audits… it means a pro has checked your systems […]
Here’s a table I knocked together from ONS data showing the survival rates of companies founded from 2007 onwards If you’ve survived 5 years, take a bow… one of only 4 in 10 who made it… And the third year seems to be the toughest
How long you plan to use an asset affects the Depreciation going through your accounts… which means asset lives matter to your Profits and your Balance Sheet. Assets are depreciated over the period you expect to use them… If you expect to use a £100,000 asset for 4 years… this year’s Depreciation could be £25,000 […]
Accounting rules mean your profits get hit by Depreciation… but you don’t have to take that lying down. Ask your accountant how they handle the Residual Value of your assets… it could boost your Profits… tax free. Residual Value… definitions Your company’s depreciation policy is “the systematic allocation of the depreciable amount of an asset over […]