Who Should Participate
This seminar is appropriate for anyone who works with small business loans and desires a basic introduction to this complicated topic. Participants are expected to have only a very basic understanding of business cash flow statements, and no prior knowledge of personal or business tax returns is required.
Make your attendance count towards your continuing professional education credits! The MBA will provide a certificate of attendance that you may submit to the appropriate advisory board.
The term “global cash flow” has become very important to small business lenders, in part because of the effect of the economy on small business borrowers, and in part because of heightened regulatory attention. In fact, regulators now commonly mention global cash flow analysis “deficiencies.”
What exactly is global cash flow?
How should it be analyzed by a business lender?
In this introductory seminar, participants will have the opportunity to understand, both intuitively and practically, what global cash flow actually is, what it measures, and how it can be used to analyze a business loan request. (While a global cash flow analysis can be performed on any business, it is most often performed on closely-held businesses, and that will be our primary focus in this class.) Through discussion and small group work, participants will explore how to:
- Define global cash flow
- Calculate global cash flow and a global debt service coverage ratio
- Perform a global cash flow analysis
- Use global cash flow in order to assess the value of a business owner’s personal guaranty
- Use global cash flow in order to assess a business owner’s personal net worth
- Define and use unleveraged global cash flow and the unleveraged global debt service coverage ratio
- Use global cash flow to assess interlocking entities
- Use global cash flow to assess non-closely-held businesses
- Calculate global cash flow using a business’s financial statements
- Estimate reasonable personal living expenses for a global cash flow analysis
- Calculate global cash flow using business and personal tax returns
Please bring a calculator to this class!
John W. Reik is the founder and president of John Reik & Associates LLC, Business Training and Consulting, which can be found on the web at johnreik.com. This Minnesota-based firm, founded in 1980, works primarily with banks and bank trade associations. In addition, John has been a lecturer and Assistant Professor of Finance at the University of Minnesota for over 35 years and spent eight years as the senior credit trainer and manager of Credit and Finance Education for First Bank System [now U.S. Bank.] Previous to his position at the University of Minnesota, John worked as a financial analyst in the Automotive Assembly Division of Ford Motor Company. John is an honors graduate of Purdue University and the University of Minnesota and holds degrees in management, accounting, finance, and law. He is past chairman of Robert Morris Associates' Minnesota Chapter Education Committee, a licensed attorney, and a member of the Better Business Bureau's Senior Council of Arbitrators.
Registration Fee (This fee includes materials, lunch and refreshments)
Note: You will be given the option to pay by credit card or to invoice your company during the checkout process.
Dates & Times
November 19, 2019
Check in: 8:45 AM
Program: 9:00 AM - 4:00 PM
Minnesota Bankers Association
8050 Washington Avenue South
Eden Prairie, MN 55344
Click here for directions
Lodging arrangements can be made at: Hyatt Place, Eden Prairie. Click here to make an online reservation, or call 952-944-9700 - dial “0” for the front desk, (Ask for the Minnesota Bankers Association rate of $148.00, plus tax)
The MBA reserves the right to cancel programs due to insufficient enrollment, instructor illness, or other reasons. Participants wishing to cancel must inform the MBA in writing prior to the event. Send cancellation notices to email@example.com. A cancellation fee of 25% of the program cost will be charged for withdrawing, or you may send a substitute. The full program fee will be charged for withdrawing after the event has taken place or a no-show.
If you have a disability that may affect your participation in this program - or any dietary issues - please send a statement regarding any special needs to firstname.lastname@example.org at least two weeks prior to the program. We will contact you to discuss accommodations.