FEATURE STORY


Article by Troy Taylor, president, and managing directors Larry Comegys and Travis Hendren of Te Algon Group, a financial advisor and investment banking firm. Call (813) 220-4630 or visit www.algongroup.com.


banks and lenders, do these things now. If you don’t, you are only delaying action on a potential problem that could cause you to close your business.


Fix Your Balance Sheet A


Positioning Your Company for the Upturn


fundamental step in any survival strategy is to fix your company’s balance sheet. If you haven’t conducted a serious review of your cash position, asset values and cash projections or held realistic discussions with your


Be Disciplined and Honest About Your Business


Fixing a balance sheet is not complicated. However, it does require you to be disciplined and brutally honest about your business.


If your assets aren’t priced to realistic market values you won’t be able to compete — and you’ll have a very difficult time generat- ing sales and revenue to service your debt. In addition, you will have difficulty attracting new capital, debt or equity when they eventually become available.


Fixing your balance sheet is the most important step you can take today.


You must be clear about the current condition of your business — the value of all of your assets, including land, inventory and work in process; overheads; current and future cash needs; and your current and future competitive position.


Your business plan must be realistic and include at least a 12-month cash flow — 24 months would be better. Your plan should also encompass working with your bank to re-price assets — land, lots and inventory — to realistic values so that you are competitive.


12 SEPTEMBER 2012 | HOUSTON BUILDER | GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE


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