640 Waterworks Dr.
Philadelphia, PA 19104
David DeMuth is on the Event Planning Committee for NACD NJ and this meeting is open to all. The Subject of Disruption Risk should be of interest to Board members, CEOs, CFOs, CIOs, General Counsel, etc…
Existing enterprise risk management (ERM) approaches may no longer be sufficient to address risks that are complex, less well-known or highly disruptive to business. And the traditional ERM identification and tracking methodologies may be insufficient to address this new risk environment. You’ll leave this program with practicable tools to help your board-
Speakers include: Maureen Breakiron-Evans, Director of Cognizant Technology Solutions, Ally Financial & Cubic Corporation; Kelly Watson, Global Lead Partner of KPMG; Matthew Espe, Director of WESCO International, Realogy Holdings, Foundation Building Materials, Inc., and Cenveo Corporation and Andrea Bonime-Blance, Founder & CEO of GEC Risk Advisory.
Attendees will receive a copy of The Report of the NACD Blue Ribbon Commission on Adaptive Governance: Board Oversight of Disruptive Risks.
When: April 18th: 5:30 p.m. – 6:00 p.m: Networking, Cocktails, Full Buffet Dinner; 6:00 p.m. – 7:30 p.m:Program & Dessert
Location: The Manor
111 Prospect Avenue
West Orange, NJ 07052
Pricing: Member Price: $75
Non-Member Price: $90
Please join us next week. You may find registration information here.
For questions regarding the event, please contact David DeMuth at email@example.com.
When a board of directors is determining the compensation for a company’s CEO and other top level executives, there are many factors that must be examined before enacting a specific compensation plan.
Below are multiple articles related to executive compensation decisions:
-One important thing to consider when evaluating any investment opportunity is executive compensation. An executive who is not compensated properly may not have the correct incentive to preform with the best interests of the shareholders. Justin Kuepper explains how to evaluate executive compensation in his article, titled “Evaluating Executive Compensation.”
-In Carmen Nobel’s article, titled “Who Really Determines CEO Salary Packages?” Nobel touches on why, although every CEO and company are very different, executive compensation packets generally look very similar. Two reasons for this are that many directors belong to boards at multiple firms and the second is compensation consultation commonality.
-Some people feel that CEOs are actually being compensated far too highly, including Steven Clifford in his article, titled “How Companies Actually Decide What to Pay CEOs.” In this article, Clifford argues that a luxury tax on any company that pays an executive over six million would be a solution to the over payment of executives.
By Peyton Wille, CFO Consulting Partners
For any company that is new or in the process of growing in size, cash management is a very important aspect of the business. Cash management is classified by Inc.com, as a broad term that refers to the collection, concentration, and disbursement of cash.
Below are multiple articles related to the importance of cash management:
-For middle-market businesses, cash flow can be even more important than sales and profits, since if the company’s cash flow suffers, the sales and profits won’t matter and the business could fall into failure or bankruptcy. Cadence Bank explains seven ways to prevent this in their article, titled “7 Ways to Strengthen Cash Flow in a Middle-Market Company.”
-Richard Passov wrote an article for the Harvard Business Journal about cash flow titled, “How Much Cash Does Your Company Need?” His article provides a model for how companies should go about determining their optimal capital structure.
-In a great article by Rebecca Macdonald and Nathan Zhu, titled “The Importance of Cash Flow Management,” Macdonald and Zhu ask an important question to business owners, “How well do you know when and where your cash is coming from or going to?” One of the most interesting facts from this article was that only slightly over 50% of small businesses even have positive cash flows.
By Peyton Wille, CFO Consulting Partners
CFO Consulting Partners is a proud sponsor of ACG Philadelphia’s Breakfast Meeting. The subject for the Breakfast Meeting will be Economic Outlook: Managing & Deploying Capital in Volatile Markets.
James Carville uttered the famous warning to Bill Clinton: “It’s the economy, stupid!” But is it the economy or political machinations that are driving capital flows, Fed policy (including rate hikes and balance sheet reductions), equity market volatility and confidence, both consumer and business?
It’s important, as investors and acquirers, to separate the temporary impacts of political gamesmanship from the underlying real economic trends, as those will largely determine the future direction of the economy. And when it comes to successful investment opportunities, its the future economy that matters.
So, are we headed into a recession or will growth stay solid and interest rates rise?
Join us as we welcome one of our most engaging and highly-rated economists, Joel Naroff, to discuss these issues and others that will impact the flow of capital and investment in the coming year.
When: March 227:15 AM Registration: 8-9 AM Program: 9-10 AM Space Available for Continued Networking
Location: Union League
Meade & Grant Rooms
140 South Broad | Philadelphia, PA
Pricing: $45.00 ACG Members
To register please click here.
For many companies, the question about whether or not a full time CFO is necessary is often a question that is overlooked and small companies will rush into hiring an expensive CFO rather than outsourcing the work.
Below are multiple articles related to whether a full time CFO is necessary:
-In Patrick Curtis’s article, titled “Hiring or Outsourcing the CFO: What Makes Most Sense for My Business?, he stresses the importance of the decision to hire or outsource the CFO position. The article explains many of the benefits that come with the utilization of an outsourced CFO.
-For many growing companies, the financial resources are not always readily available to take on a CFO, but a small business owner should not worry about this situation. Peter Daisyme explains three alternatives to a full time CFO in his article, titled “Can’t Afford a Full-Time CFO? Here Are 3 Options to Try.”
-If a business owner reaches the conclusion that they do not need a full time CFO, there is still another decision to be made; whether the business should fill the void with an interim CFO or a Part-time CFO. In Paro’s article, titled “When You Need an Interim CFO vs. a Part-time CFO,” he explains the implications of either decision.
By Peyton Wille, CFO Consulting Partners
John DeLorenzo, Director, CFO Consulting Partners LLC
According to the National Alliance on Mental Illness, 43.8 million people in the U.S., or approximately one in five, suffer from mental illness. Approximately 60% of those affected are not treated, in some part due to a shortage of mental health providers as well as a shortage of available insurance coverage. The result is a significant increase in the use of emergency services for behavioral health issues. The National Council for Behavioral Health reported during a recent three-year period there was a 42% increase in the use of emergency services for behavioral health. By the time a patient reaches emergency services for their condition, it is likely that the condition is much more severe than if they had received treatment earlier. That said, the availability of coverage for behavioral health issues is improving due to a law enacted in 2010, the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA), which made insurers offer no fewer benefits to an individual for mental health treatment than for physical health treatment. In 2014, the Obama Administration widened the scope of coverage through the Affordable Care Act (ACA), by making mental health coverage a requirement for insurers.
As a result of improved insurance coverage, the number of individuals with behavioral health coverage is increasing at a faster pace than there are services available to treat them. Furthermore, the need for behavioral health services is increasing significantly due to the opioid crisis and other drug and alcohol addictions, in addition to the increased prevalence of learning disorders appearing in children such as ADHD and autism. According to the National Alliance on Mental Illness, in 2014, $221 billion was spent on mental illness compared to $135 billion in 2005 according to Health Affairs. Expenditures are expected to rise to $281 billion in 2020 according to The Substance Abuse and Mental Health Services Administration (SAMHSA).
Based on the increases in those seeking behavioral health services, the industry is ripe with opportunities for consolidation, aggregation, and innovation.
Due to the shortage of behavioral health providers, the sector is going to need to rely on technological innovations such as aggregation of data to identify and head off behavioral health issues before they become more complex behavioral issues or result in comorbidities. For example, patients with diabetes have a higher rate of depression and therefore those diabetic patients should be identified and observed for potential depression. The ability to aggregate data to identify patients with possible behavioral health issues early on will hopefully lead to treatment before the illness becomes a more complex problem. Another significant technology opportunity includes digital therapeutics, where software is utilized to provide cost-effective treatment, thus reducing reliance on costly live providers and side-effect prone drugs. Other areas of digital therapeutics are games and other digital tools; aiding children with ADHD or individuals with less severe behavioral health concerns including insomnia, anxiety, and stress. Employers have expressed interest in treatments to reduce stress amongst employees and appear ready to pay for that service.
Another area of investment in the behavioral health space is utilizing technology to scale. The most significant barrier to mental health treatment is access to trained providers. There is a mismatch between supply and demand in rural areas. There are opportunities to develop telemedicine applications so that clinicians who specialize in specific behavioral health issues can connect with a broader population of patients; helping solve the low supply problems. This can be deployed live or in a prerecorded video format to rural areas or places like prisons.
Additionally, significant investments are being made in computerized tracking or in other words, automated workflows. The technology is centered around utilizing algorithms to determine when real-time intervention is required, alerting technicians to implement critical treatment in a timely manner or in anticipation of a negative behavioral health event.
The ability of the healthcare industry to serve the growing demand for behavioral health services in a cost-effective and efficient manner will require new ways to address the distribution of care. Primarily, we expect to see an increased aggregation of providers, deeper integration of services both within behavioral and general health, as well as a significant technological investment to optimize the deployment of service.
All of this provides significant investment opportunity with the potential for healthy returns for private equity investors interested in the healthcare space.
CFO Consulting Partners’ healthcare practice is here to help you, as we are focused on provider practices and technology, particularly in behavioral health. We can assist private equity to prepare a practice consolidation or technology acquisition/investment strategy. We are also available to help technology companies in healthcare with their growth strategies and fundraising.
CFO Consulting Partners’ SEC and pre-audit services help public and private companies produce workpapers and a full set of GAAP financial statements, including notes, for review by its independent auditors. Workpapers are cross-referenced and references are made to supporting documentation. For public companies, CFO Consulting Partners offers SEC report preparation services (i.e., 10-Qs and 10-Ks, including MD&As).
Typically in an SEC and Pre-Audit engagement we:
Paul Karr, Director, CFO Consulting Partners LLC