Give Yourself a Raise- Clean Out Your Accounts Receivable

Do you know how much of your cash is sitting out there uncollected in your Accounts Receivable department? We work with rehab businesses of all sizes and we can tell you it’s not unusual for us to see $200,000+ in billing more than 121 days outstanding. And that’s not counting what’s sitting in the 0-120 days categories! How do you keep your claims from going past the 60-day mark? What are the most collectable accounts in your 61-90 day bucket? Do you use a collections agency to … [Read more...]

What Are Earn-Outs?

Failure to agree on price is one of the most common reasons that M&A negotiations reach a stalemate. The buyer is not willing to commit additional guaranteed dollars to a deal and the seller believes the company is being under-valued. In these situations, there may be an alternative: an earn-out. An earn-out is an additional purchase price for a business that is paid based upon performance criteria that are agreed upon by the buyer and seller. An earn-out can be an effective way to … [Read more...]