Character

Old school bank training – The 3 C’s of Credit:

Character – Show past history of meeting obligations of all kinds
Capacity – Demonstrate capability of business under new owner to throw off sufficient cash flow to service the debt.
Capital or Collateral – Fall back position for lender if first two C’s do not materialize

Character – Show past history of meeting obligations of all kinds
Do you know what your credit report says about your character? It is worth the cost to find out. It may take several years to remedy any shortcomings you might find.

Mend fences. Make sure there are no lingering disputes or disagreements with vendors, past or present, that may derail future plans. Reach out personally if necessary; don’t “delegate” this to the purchasing agent.

Get with HR and discuss all former employees from the past several years to uncover any potential disgruntlement.  Are you routinely doing exit interviews with all exiting employees? Do you do that personally? If not yourself, is it handled by a trusted (trusted by the employee)  confidential consultant?

Get your best techno-geek and have them do a thorough online search for social media posts, DIS-board postings. Check out industry forums for reference to your company and its dealings.

Bankers don’t like surprises. And trust me, you won’t like these kind of surprises either if they chase away a ready buyer with money in hand.

Jim Peters
Peterspective
(317) 372-2304

 

The instant a private thought is communicated to another in any form, compromises begin to be made in the confidentiality, integrity and availability of the information shared. Yet the appropriate sharing of information is critical to the operation and success of every organization. The purpose of our relationship will be for me to assist with the safeguarding of the information critical to the continuation of your business. My role in our relationship will be similar to that of the sailor in the crow’s nest. I am not there to steer the ship nor am I there to read the compass or do soundings. I am there to keep a watch out for storms or pirates on the horizon and to keep an eye on the distant shore.

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