28 06, 2017

Convergence of Liquidity, debt loads, and taxes =

By | 2017-06-28T15:16:09+00:00 June 28th, 2017|business advisory|0 Comments

We have seen a convergence after years of cheap money, lots of liquidity, and companies pilling on  debt loads that is now converging with a bankruptcy predictor called the “Z Score”.  This is creating a blinking yellow light according to legendary bankruptcy expert Dr. Edward Altman. As these two interlocked factors start to create warnings a third element is drifting into the not so distant future.  An Article in the WSJ June 26, 2017, “The $1.5 Trillion Business Change Flying Under the Radar”.  Congress is kicking around scrapping the interest deduction for businesses.  This would increase the after tax cost of interest an additional 35% and may in fact put many highly leveraged deals in covenant default, to negative cash flows.  The economic disruption would be gigantic. With congress just thinking in those terms should send [...]

6 03, 2017

FinTech

By | 2017-03-06T13:04:18+00:00 March 6th, 2017|business advisory|0 Comments

“lenders on the panel do not wait until month end for the AR aging, and none would lend to a company unable to provide aged AR almost instantaneously” As we look to how technology continues to change the world around us and how we conduct business, Fintech represents a new era of real time analytics and 24x7 exception reporting. I recently attended a panel discussion on current uses of Fintech in commercial lending and was struck by the differences in use between the application of Fintech in the North versus the South. With east coast offices in the North and the South it continues to amaze me at the divergence in these markets.  In the Northeast, factors are scarce and second tier lenders are in the minority versus the South that has [...]

2 12, 2016

Economic impact of Trump Administration

By | 2017-03-06T12:04:49+00:00 December 2nd, 2016|business advisory|0 Comments

Many of us are planning for 2017 and the election results are certainly going to impact strategies for years to come.  At this point it might be best to plan what if scenarios as the Trump administration is selected, confirmed, and starts to execute their strategy.  In reality we are seeing a massive change in global policies which started with the Brit exit, USA elections, upcoming elections and change in France, Italy and in Germany.  At this point for better or worse it is safe to say that “globalization” as defined under President Obama is dead.  We are going to see a relatively rapid change in direction.  Like an aircraft carrier traveling at full speed that makes a 90 degree turn it is going to create some waves.  This blog will take a look at what some [...]

29 04, 2016

Transforming to NewCo

By | 2017-03-06T12:04:49+00:00 April 29th, 2016|business advisory|0 Comments

Many companies face challenges during their economic life cycle and must reconstitute themselves to stay abreast with technology and markets.  All too often we see companies that fail to change and disappear.  Developing new products and markets bring on new and different challenges to a company’s existence.  Some of these challenges create obstacles not encountered before.     Capital Restoration can help avoid the obstacles and smooth the waters assisting the team in avoiding a killer storm. Case Study: Your longtime client / customer has been profitable for years but is concerned they will run out of cash as they strategically look to move into new markets.  How this plays out can determine if you have a CEO opportunity or a customer for another decade.   (CEO = career ending opportunity). This [...]

23 11, 2015

Japan, China and US economies

By | 2017-03-06T12:04:50+00:00 November 23rd, 2015|business advisory|0 Comments

Recent economic data released by Japan, China and the US  creates an interesting paradigm. For me the real question is how these challenges impact our clients, customers and us directly. The recent economic data is not necessarily bad news but interesting.  The data is presented to create meaningful thought on how this data can impact you and those you service. Specifically we will look at Japan’s mild recession, China’s fight to keep its economy moving, and some insights into the US market. Inventories decline in Japan creating negative economic results, China continues to struggle with over expansion and declining growth, and  some yellow lights blinking on the US economy. Japan's Economy slips into recession Yet the contraction was relatively mild, and a decline in inventories was the biggest factor. Japanese government officials [...]

9 07, 2015

Housing market conundrum

By | 2017-03-06T12:04:50+00:00 July 9th, 2015|business advisory|0 Comments

Boston’s housing market may be red hot, but other parts of the state are wrestling anew with an old problem: foreclosures. The number of foreclosures initiated by lenders in Massachusetts climbed nearly 60 percent in the first five months of 2015 compared with a year earlier with the biggest increases in depressed markets. The increases are being driven by lenders pushing through their backlogs of delinquent loans after new rules governing repossessions were ironed out, said banking groups and housing advocates. (Boston Globe July 1, 2015) For personal and business reasons I have performed some due diligence in the markets west of Boston. While foreclosures are normal in all economic cycles it was surprising to see several foreclosed properties for sale in Wellesley MA and other high end communities. This begs the question what is going on. [...]

27 03, 2015

Interest rates / liquidity

By | 2017-03-06T12:04:50+00:00 March 27th, 2015|business advisory|0 Comments

The latest Federal Reserve speak provided some input into just when the Fed will start to raise rates and by how much. Winter Havoc / Liquidity / Interest Rates The latest Federal Reserve speak provided some input into just when the Fed will start to raise rates and by how much. We all agree a June increase of ¼ point is likely but what happens from there is the real puzzle. It appears the Fed has laid out a solution to the puzzle but it is in sand not cement. I had started to think about a blog on the subject when an opportunity to hear Karen Gilmore, Regional Executive of the Federal Reserve Bank [Atlanta] occurred. Her presentation helped clarify the information. Her personal comments were confirmed by the economic data released today, March 25, [...]

4 03, 2015

Global Economic

By | 2017-03-06T12:04:50+00:00 March 4th, 2015|business advisory|0 Comments

How will today's global economic performance impact your company / client Over the last few days global economic data / information has appeared in the Wall Street Journal. While common threads exist it is the individual divergence that may impact your situation. What is the impact on your business or a client’s enterprise? Enterprises with investment grade ratings are turning to the Eurozone to issue long term debt instruments to take advantage of the trillion being made available.  10 year bonds with yields of 3.9% and 30 year bonds with yields of 4.7%.  Yields are running 1.7% above treasury yields. What will these bonds be selling for in a few years? The universal we live with oceans on two sides and friendly neighbors north and south. Well mostly friendly. This insulates us from [...]

13 01, 2015

Is capitalism finally retuning to the United States.

By | 2017-03-06T12:04:51+00:00 January 13th, 2015|business advisory|0 Comments

Capitalism is a little like a seesaw. There are winners and losers and it continually moves back and forth. Nothing can go up forever nor can they go down forever. It is my opinion that for the last several years we have been living in a benign economic environment. The seesaw has not been moving.    My friends in lending tell me that they are having a difficult time lending money, yet the Fed has made the economy awash in cash. My investment banking friends tell me deal flow is slow. My own experience in this area leads me to the same conclusion. We have looked at several deals under our new PE firm www.westondelray.com and deals do not get past the initial due diligence. All this said [...]

24 02, 2014

Retail Sales Remain soft – is unemployment really 6.7%

By | 2017-03-06T12:04:51+00:00 February 24th, 2014|business advisory|0 Comments

Brick and mortar retailers continue to see declining sales. Reported Unemployment is below 7% yet consumers continue to hunker down. Is this an oxymoron or is something else transpiring. Boston Federal Reserve President Rosengren’s speech on February 6, 2014 may shed some light on the subject outlining his view of the unemployment rate may shed some light. First, let’s look at the retail reporting for January 2014. Walmart – reporting expectation in the red on same store sales for the month of January and believes the holiday shopping season will reflect a decline from the previous year. Walmart is blaming reduction in FOOD STAMPS and utility costs incurred by its low income customers. Retailers report demand was not there in January following a push to move inventory during the holiday sales season. Shoptrac reports overall January sales [...]

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