Description
Kyle Peterdy – CFI Education – Widgets Inc. – Adjusting a Business Owner’s Net Worth download, Kyle Peterdy – CFI Education – Widgets Inc. – Adjusting a Business Owner’s Net Worth review, Kyle Peterdy – CFI Education – Widgets Inc. – Adjusting a Business Owner’s Net Worth free
Kyle Peterdy – CFI Education – Widgets Inc. – Adjusting a Business Owner’s Net Worth
Widgets Inc. – Adjusting a Business Owner’s Net Worth
Step into the shoes of a commercial credit professional to practice understanding and adjusting a business owner’s self-declared personal financial position.
Explore how company cash flows and personal earnings are connected.
Identify potential risks with a business owner’s personal financial situation.
Make important adjustments to the business owner’s net worth.
Overview
Widgets Inc. – Adjusting a Business Owner’s Net Worth Overview
Understanding a business owner’s personal financial situation is a critical skill in managing risk for commercial lenders. In this practice lab, we’ll step into the shoes of an SME lender and seek to holistically understand a business owner’s personal finances (within the context of a prospective borrowing request). We’ll dig through the company’s financial results and the owner’s personal net worth statement to try and identify potential risks.
Next, we’ll work through an adjustment template, line-by-line, in order to arrive at a responsible set of insights and a prudent set of adjustments.
Widgets Inc. – Adjusting a Business Owner’s Net Worth Learning Objectives
Upon completing this practice lab, participants will be able to:
Recognize how a business owner’s corporate cash flow and personal earnings are intertwined.
Quickly identify risks / potential red flags in a business owner’s personal financial situation.
Make appropriate adjustments to reflect an owner’s actual ability to tap into liquid, unencumbered personal assets to inject cash into the corporation or to make whole on a personal guarantee.
Who Should Take This Lab?
This lab is a great building block for early career business and commercial bankers, including relationship managers, analysts, and adjudicators. Other credit professionals like asset-based lenders, commercial real estate lenders, equipment finance professionals, and commercial loan brokers will also get enormous value.
What you’ll learn
Background & Context
Introduction
Download Lab Presentation
Context
Interactive Exercise 1
Client Introduction
Analysis
Financial Statements
Shareholder Loan & Leverage Ratios
Interactive Exercise 2
Personal Net Worth Statement
Pro Tip
Owner’s Income & Expenses
Cash & Shareholder Loan
Interactive Exercise 3
Marketable Securities
Pro Tip
Retirement Accounts & Registered Investments
Real Estate
Other Assets
Pro Tips
Tying it Together
Alternative Scenario & Summary
Alternative Scenario: Joint Guarantors
Summary
Qualified Assessment
Qualified Assessment
