Tatum LLC released it’s second installment of the valuable whitepaper for contractors looking to gain insights on Liquidity and Working Capital strategies.
In this whitepaper, executives are advised to look beyond EBITDA as a measure of cash flow and working capital. “EBITDA does not measure receivables growth or timing of current expense payments. Consequently, working capital needs—often your paramount financial challenge—are ignored. EBITDA is not cash flow. By itself, it is neither an adequate measure of financial capacity nor a measure of working capital needs. Alternative or supplemental tools must be employed for effective cash flow management” .
Please see this link to download the complete whitepaper for insights on better ways to implement working capital strategies.
ABOUT THE AUTHORS Luigi D’Amato is a fi nancial executive with 20+ years of results in the federal defense industry in CFO, Corporate Controller and VP Finance roles for small and large Government Contractors. Throughout his career, Luigi has built vast knowledge in all aspects of the Federal Procurement cycle and offers a proven track record in M&A, Divestitures, and Joint Venture startups in the US and overseas. Mr. D’Amato is recognized as an expert in cash flow and treasury management, cost savings strategies, business consolidations and turnarounds of financially distressed organizations. He can be reached at 202.905.0728 or Luigi.Damato@TatumLLC.com
Bob Martins has directed financial strategy as CFO of a high growth middle market government contractor, including completion of two strategic acquisitions and the sale of a subsidiary for $44 million cash plus a retained interest. He restructured and directed all administrative functions to facilitate high growth, and met working capital needs with bank financing. Martins has held senior positions with regional banks in the DC Metro area, where he was responsible for commercial lending groups including specialized Government Contractor finance. He can be reached at 202.470.3756 or Bob.Martins@TatumLLC.com.