Liquidity is Drying Up on Main Street
Liquidity is Drying Up on Main Street

As the dust settles from the turmoil on Wall Street, I am trying to judge the fallout for our business and our client’s. The danger seems so far removed but I sense that the “mushroom cloud” of financial fallout is spreading!

Liquidity is Drying Up on Main Street

You would think that in Houston, Texas, Oil Capital of the World, that business would be great and money easy to come by. Not so! For the past two months liquidity has been drying up. In addition, this change in the liquidity has been going on way before Hurricane Ike made landfall.
Recently, several of our clients have been in negotiation with their lenders regarding debt covenants on loan renewals. The companies are in strong financial shape with great ratios. Still, the banks want to tighten up the debt covenants. It seems that they want a hair trigger “trip wire” in case the economy tanks.
I spoke today with a local investment banker who has had two transactions go away due to lack of the purchasers ability to find financing. He is working his remaining deals but doesn’t know where the pipeline is going to come from. He indicated that the private equity groups that can get money are having to put down on average 40% equity.
Finally, I am seeing the daily sales outstanding at several of our clients and our company get a little longer than six months ago. Not a problem yet, but indicative of a drying up of liquidity on Main Street! Liquidity is drying up on Main Street


Changing Markets Affect on Valuations

Economics back in January 2021 Back in early 2021 there were certain signs that the economy was going to change in some way, and many predicted this change would not be positive.  Post Pandemic in January 2021 the U.S. Government continued to pour billions of dollars into the economy by printing more money. Economics 101

Read More »

Quotes Every Financial Leader Needs to Read

A few weeks ago, I started another series of our Financial Leadership Workshop, and in Day 1, we discuss that paradigm shift that needs to take place to go from accounting to financial leadership. So, I compiled all the quotes from all of my curriculum that make me think… How can I lead my company differently? What can I

Read More »

The Future of the Accounting Workforce

See Also: Accounting Income vs Economic Income Accounting Fraud Prevention using Quickbooks Accrual based Accounting American Institute of Certified Public Accountants Auditor The Future of the Accounting Workforce Firms who are hiring new accountants or accounting majors have to understand where the newer generations are “coming from,” as a Boomer (born 1946-1964) might say, to target a style that will bring out the next

Read More »


Financial Leadership Workshop

MARCH 28TH-31ST 2022


Financial Leadership Workshop


June 12-15th, 2023

WIKI CFO® - Browse hundreds of articles