Making Credit Decisions Based on…..air?

| Financial

By Mike Alerding     I have spent the last 25+ years as a volunteer loan committee member of two SBA 504 loan committees and two mezzanine financing organizations. In doing so, I have had the opportunity to look at literally thousands of financial statements from borrowers and potential borrowers from closely-held and usually smaller businesses. I have watched lending professionals approve loans using a variety of information, some of which is actually relevant to the loan itself. I have also had Read more [...]

Selling a Closely-Held Business – a process of evolution

| Business Miscellaneous

By Mike Alerding     It has been a while since we have seen the Mergers & Acquisition business restart its engine. Since 2007, the number of sales of closely-held businesses that have sold has slowed to a standstill. Many businesses that should have sold during the past four years are still sitting on the sidelines waiting for all of the necessary M&A ingredients to come together. Unfortunately, for the smaller size businesses, they may have a bit longer to wait. Closely-held businesses Read more [...]

Creation of Private Company Financial Reporting Standards

| Audit and Accounting

Letter to Board of Trustees of the Financial Accounting Foundation Dear Financial Accounting Foundation: I am writing in support of the Blue Ribbon Panel’s recommendations on the creation of Private Company Financial Reporting Standards (PCFRS) for privately-held companies. A new set of meaningful and pragmatic standards and a separate standard-setting body are critically needed as soon as possible in order to assist the real engine of our economy – closely-held businesses – in spending less Read more [...]