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Thursday, February 16, 2012

What business leaders can learn from #PrivateEquity firms @RESULTSdotcom

@RESULTSdotcom Global RESULTS.com
The Business Execution Experts. Transform your business potential into extraordinary results.
http://www.results.com/
https://twitter.com/#!/RESULTSdotcom
16-Feb-2012


The best performing Private Equity (PE) firms have valuable lessons to teach business leaders. Here is our take on an article from Booz & Co.
Cash is king.


When PE firms acquire a company, they typically use debt to finance the purchase. This creates an urgency to optimize cashflow to repay the debt. They tightly manage accounts receivables, optimize inventories, and scrutinize all discretionary expenses.


Likewise, business leaders should scrutinize every expense in their business. Is it “must have” (required to keep the lights on), “smart to have” (creates a future strategic advantage), or “nice to have” (everything else). The next step is to eliminate the “nice to have” expenses.


Continue Reading this Story While Entering The Full World Of @RESULTSdotcom

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