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I also became reacquainted with the immediate concern of putting food on the table whilst on an entrepreneurial thrill ride to zero cash flow.
--GM ascrines $700 in value to the PSA warrants received in the deal, but while those warrants (strike price: €1) have economic value, since they aren't exercisable for five years they have zero cash flow value.
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And thus that scary billion-dollar, nine-month loss in 2002 that had nearly zero cash-flow impact.
Ultimately, because of our willingness to create our own opportunities in this competitive market, we were able to add two cash flowing assets to our portfolio.
From the balance sheet, we track three cash-flow measures very closely.
"We were buying at four to five times cash flow at a time that the Internet companies were going for 100 times cash flow," Mr. McKeon said.
Management typically pays five to seven times cash flow, he said, to acquire companies that become far more profitable after it upgrades their operations.
You can buy things for three to four times cash flow.
Lastly, "a fall-back, riskless liquidity reserve for three to six months' cash flow".
A lot of them are trading at giveaway prices of three to five times cash flow.
"If you buy something for two to three times cash flow, you don't have to wait for the bottom".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com