The CFO'S Perspective

Larry Breitbarth

Larry Breitbarth

Larry Breitbarth is an experienced financial executive with a proven track record in financial management, operational and strategic planning, performance improvement, corporate controllership, project management, and valuation consulting. He began his career as a business valuation consultant with Arthur Andersen in Chicago and served manufacturing and distribution clients in the automotive and food equipment sectors.

Recent Posts by Larry Breitbarth:

How Your CFO Can Manage Supply Chain Disruptions

Import shipping from Asia has become a nightmare. According to McKinsey & Company, shipping costs for a 40-foot container have increased over five-fold in 2021, from $2,000 per container to $13,000. Container ships that finally arrive on the West Coast often have to wait offshore for a dock to open to offload their cargo. Once unloaded, containers can spend days or weeks in the Port of Los Angeles, Port of Long Beach, or Port of Seattle until rescued by a truck or intermodal train.

Topics: Trends Planning Manufacturing

PPP Loan Forgiveness – ‘To forgive or not to forgive, that is the question.’

In the case of a Small Business Administration Payroll Protection Program (“PPP”) loan, businesses have been presented with an opportunity to maintain their current employment levels and pay certain expenses with assistance from Uncle Sam, in the form of a loan. These loans carry a low-interest rate and up to five-year maturity.

Businesses can apply to have the loan treated as a grant; in which case the loan is forgiven.

This seems like an easy decision for the Chief Financial Officer. Ask for loan forgiveness and accept the gift. But would it ever make sense not to ask for forgiveness? Could the underlying economics of a long-term loan be almost as good as or even better than an immediate grant? The short answer is yes, but only under very specific circumstances. For most businesses, under most circumstances, and for most loan types, loan forgiveness is best.

Topics: PPP Debt Management

How a CFO can Increase the Long-Term Value of a Company

For business owners and executives working toward an exit from their company, a CFO who is skilled in the entire lifecycle of a business transaction is invaluable. An experienced CFO will take the steps needed to increase the value of the company. By focusing on the drivers that increase value today, the business will become worth more to a buyer in the long-run. As a result, the owners will be able to exit with more profits than those who take a short term or last-minute approach.

Topics: CFO CFO Responsibilities