Not exact matches
Corporate venture - capital firms that benefit from high
cash flows might be willing to spread out their investments over a few similar companies and take a back seat in
terms of driving their growth, while a venture - capital firm is typically motivated to take a more focused and hands - on
approach for its portfolio companies.
This
approach allows you to keep the business long -
term and maintain the monthly
cash flow it provides while also freeing yourself from the daily management and workload.
One is legitimate — every year in which short -
term interest rates are expected to be zero instead of say, a typical 4 %, should reasonably warrant a 4 % valuation premium in stocks and bonds, over and above run - of - the - mill historical norms (one can demonstrate this using any discounted
cash flow approach).
Meeting a temporary
cash flow need requires a different
approach than borrowing to purchase a heavy piece of equipment, expand into a new location or meet some other long -
term capital need.
One can demonstrate the arithmetic quite simply using any discounted
cash flow approach, and it holds for stocks, bonds, and other long -
term securities.
Having spent over 20 years of my career in a seasonal small business, I've learned that taking a strategic
approach to managing the business and business finances will not only keep your business
cash flow positive during the slack times, it will help you stay focused on your business» long -
term financial health when it's flush with
cash.
Concentrating on long -
term growth in NAV ought to give OPMIs far greater downside protection than would the conventional
approach where the emphasis is on predicting periodic future operating
cash flows or earnings (with earnings defined as creating wealth while consuming
cash).
He further concluded that, as completion of the sale agreements
approached in April 2005, and the directors came to appreciate that the club would have insufficient funds from the completion monies with which to make a substantial additional payment to E, all that had been agreed between them was the principle that he should receive a substantial payment as soon as the club was in a position to make it, out of monies
flowing to the club from the claimant companies in connection with the project, but that no specific amount had been agreed, nor any requests made to the claimants that they should bear the burden, either in
terms of
cash flow or expense sharing.
One possible hybrid between the two
approaches could be to split your long
term plan into two phases - an acquisition phase where you roll all
cash flow into your next purchase, and add properties as quickly as is prudent.