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Money Matters

Inside, Outside or Upside Down

10 frequently asked questions about ownership transfer By P. Andrew Limes There are four transactions most often associated with investment banking. Those include selling, recapitalizing, acquiring, and raising debt or equity. For many business owners considering a transaction, one of the most difficult questions to answer is the first one that arises: “What are the best alternatives for my business?” ...

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The 2014 MHEDA DiSC Report

By Robin Currie  It’s time to prepare for this year’s MHEDA DiSC Report for the Industrial Truck, Engineered Systems and Storage & Handling industries. Let’s take a quick look back at some of the highlights from last year’s industry report. The Currie team places substantial emphasis on the Return on Assets measure, especially in the Industrial Truck analysis. Remember, ROA ...

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Greening the Supply Chain through Systems Thinking and Collaboration

By Julie Urlaub Sustainability has been described as a continuous improvement process that challenges business to balance organizational needs with the shifting expectations of their stakeholders. This balance can be demonstrated by a consumer rise in eco-friendly business, innovation, technological advancement, or mutually beneficial proactive change. While sometimes seen as an overwhelming landscape of potential improvement, a common thread of ...

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Risk Management

By Jayme Bates Due to the high cost of equipment ownership, many would-be equipment owners have become equipment renters, and many of our dealers are reporting increased rental revenues versus a year ago. However, there may still be money, and risk, left on the table if you’re not currently offering some sort of rental equipment protection. There is an opportunity ...

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Exploring the Equity to Sales Ratio in the Equipment Industry

By Robin Currie Liquidity measures make up a large part of what Currie Management Consultants, Inc. calls the Report Card for the Executive. One important function of the liquidity ratios is that they are used to assist dealer principals in measuring the ease with which their enterprise can repay its short-term and long-term debt obligations. This is done by comparing ...

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Absorption Measures Performance and Sustainability

By Robin Currie One of the important measures that Currie Management Consultants, Inc. uses in all Currie Financial Composites for equipment dealers is the absorption measurement. Absorption has been referred to as a simple, but not simplistic measure of dealer performance and sustainability. It is a measurement used to indicate how much of a company’s total expenses can be covered ...

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EBITDA or ROA?

By Robin Currie The Currie Financial Model employs several critical liquidity and profitability measures for participating distribution clients. This collection of calculations makes up what we call “the Report Card for the Executive.” Included in this report are debt to equity ratio, absorption, current ratio, asset turns, return on assets, etc. What is conspicuously not included in the Currie Financial ...

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Expanding Service Department Metrics

By Matthew Hicks In our work with dealers in multiple industries we see the same anxiety regarding the management, development and execution of the service department. Especially in periods of service market growth, the anxiety is heightened because of the diverse forces that play on service performance. These forces range from recruiting, selecting, onboarding and training cycles, to billing, expense ...

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Help Stamp Out Budgeting

By Dr. Albert D. Bates For at least 30 years I’ve been extolling the virtues of budgeting in improving company performance. I have been wrong all of this time. It is not that budgeting itself is wrong. It is simply that budgeting alone does not seem to improve profitability. Budgeting must be augmented with a Managerial Profit Plan. Fully implemented, ...

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