Access to Cash Is the Golden Nuggets for Enhancing Business Value
John Kirsch
Oct 02, 2017

A potential buyer for your business will look at many areas to understand the business value, such as:
• Professional management
• Loyal customers
• Engaged employees
• Sales growth
• Low cost provider
• Sustained profitability
• State of the art facilities
• Superior technology
• Strategic suppliers
• Speed to market
• Patent protection
• Product or service innovation
Not one of the items on this list will have as much impact as to access capital or cash. The ability to generate attractive cash profits is the #1 success factor for selling your business in the future. Profitable companies have failed because it took too much working capital to fund their growth and it destroyed their business.
Consider a brand that stood for integrity and quality throughout the world like Arthur Anderson then one mess up caused them to lose access to capital. To get the capital they needed to survive, they had to be absorbed into a competitor at a huge discount to their true business value.
Focus on access to capital or cash – without it – a business cannot survive for long. This is the #1 reason an owner fails to sell a business.
Access to cash is important throughout your ownership and is not something you can change overnight. Work towards a long term strategy of improving your cash position to grow your business value and prepare for your eventual exit.

About The Author
As a highly energetic business leader and entrepreneur, John has a passion for helping businesses and nonprofits reach…
Tags
Sign Up for Email Updates
Related Articles












Does your Business Deduct Research & Development Expenses? Major Changes Impact 2022 Taxes…
- 11-09-22
- Elizabeth Michalak






Why Have Your Financial Statements Reviewed (Even When Not Required)
- 10-17-22
- Kirsch CPA Group















Case Study: Strategic Accounting Support from Acquisition to Sale
- 09-20-22
- Kirsch CPA Group



























Prevent a Poorly Structured Chart of Accounts from Hiding Your Profitability
- 01-06-22
- Nick Roell















Entrepreneurial Mindset: Kirsch CPA Group Sets a Framework for Growth
- 10-28-21
- Kirsch CPA Group






























What Your Numbers Are Saying: Are You Listening?
Part 2: How Attractive Is Your Balance Sheet?
- 07-19-21
- Kirsch CPA Group












What Your Numbers Are Saying: Are You Listening?
Part 1: Do You Know Your Profitability?
- 06-09-21
- Kirsch CPA Group




































Using Cash Flow Forecasting to Avoid Problems & Grow Your Business
- 04-07-21
- Kirsch CPA Group









Selecting the Right Payroll System for Your Construction Business
- 04-01-21
- Kirsch CPA Group















Self-Employed May Be Eligible for COVID-Related Tax Breaks for 2020
- 03-17-21
- Kirsch CPA Group






COVID-19 Relief: Overview of the New American Rescue Plan Act for Individuals
- 03-17-21
- Kirsch CPA Group



COVID-19 Relief: Business Overview of the New American Rescue Plan Act
- 03-17-21
- Kirsch CPA Group



























Opportunity Zone Investments: A Tax Deferral Opportunity You May Have Overlooked
- 02-17-21
- Kirsch CPA Group




































The Status of Temporary COVID Tax Relief Measures After the New Law
- 01-21-21
- Kirsch CPA Group















8 Accounting Practices for a Financially Healthy Construction Business
- 01-07-21
- Kirsch CPA Group









Appropriations Law Adds Some Business Tax Breaks and Extends Others
- 01-07-21
- Kirsch CPA Group



























Contending With the Patchwork of State Requirements for Nonprofits
- 12-17-20
- Kirsch CPA Group




































Employee or Independent Contractor? The Rules May Be Getting Simpler
- 11-12-20
- Kirsch CPA Group









Do the COVID-19 Extended Deadlines for Health Plans Still Apply?
- 11-12-20
- Kirsch CPA Group












Using Remote Workers? Protect Sensitive Company Data from Exposure
- 10-28-20
- Kirsch CPA Group













































What You Need to Know About the Deferral of Payroll Tax Obligations
- 09-15-20
- Kirsch CPA Group









Hobby or Business? How to Treat COVID-19 Sideline Activities for Taxes
- 09-15-20
- Kirsch CPA Group















Monitor These 3 Things as COVID-19 Changes Your Nonprofit’s Priorities
- 08-11-20
- Kirsch CPA Group












FASB Offers Reprieve from Updated Lease and Revenue Recognition Rules
- 07-23-20
- Kirsch CPA Group






COVID-19 Crisis May Affect Tax Angles for Rental Property Losses
- 07-10-20
- Kirsch CPA Group









Last-Minute Strategies for Businesses that Deferred Filing Tax Returns
- 07-01-20
- Kirsch CPA Group









Can Your Business Survive and Even Thrive in These Trying Times?
- 06-18-20
- Kirsch CPA Group






Five COVID-19 Obstacles a Construction Company Needs to Navigate
- 06-12-20
- Kirsch CPA Group












Cash Flow Tip: Postpone Payment of Certain Federal Employer Payroll Taxes
- 04-20-20
- Sue Schloemer


















Tax Filing Deadline Remains April 15 – Payment Due Extended to July 15
- 03-19-20
- John Kirsch










































8 strategies to help you adapt to economic down turn without layoffs
- 02-24-18
- Diane Glover


















Which Research Activities Qualify for the Qualified Small Business Tax Credits
- 07-17-17
- Diane Glover





































