According to the textbook definition, cash management is simply looking at one’s income and expenses, and. If one’s income exceeds expenses, then they are considered to have positive cash flow, while if their expenses exceed their income, they have negative cash flow. If so, then it becomes a question of how the additional income is deployed. Hopefully the income exceeds the expenses, and then it becomes a question of how that additional cash flow is deployed.
M&A takes cash management to another level. We like to develop and review a client’s balance sheet, which lists all their assets and debts. Unlike many financial advisors who focus on the assets, we turn our attention to the clients’ debts, as that is typically the area in which we can offer the greatest improvement in one’s cash flow and overall financial health. In fact, reviewing a client’s balance sheet tends to be one of the first things we do in any review meeting, particularly in the early years of a client relationship. We seek methods to assist in debt reduction and/or ways in which clients can refinance the9ir dent to reduce the amount of money they pay each month and overall their lifetime to other financial institutions.