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.