Working Capital and Cash
Berkshire Partners (C&V)
- There’s no such thing as a company, they are composed of individuals with different motivations and incentives
- Know what question you are answering
- Use multiple valuation methods to narrow the region of darkness : “What method to determine value?”
Lincoln Electric (People)
- Aligning missions and incentives can create a powerful company
- Does it matter if employees stay and perform well in the system but not believe in the mission?
Fjord Trading Company (Growth)
- Manage working capital carefully by controlling growth. Otherwise, you run out of cash. Always remember Sahlman’s 4 Rules of Cash.
- Know which method of calculating SFG for your business.