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13-Week Cash-flow Presentations Part of Ongoing Educational Sessions

By: Allen Pratt of FGMK, LLC

On July 15, 2016, The Turnaround Management Association Chicago/Midwest Chapter 2016 Certified Turnaround Professionals (CTP) and Continuing Education Committees are pleased to announce a successful 13-Week Cash Flow presentation featuring Exploration & Production (E&P) and healthcare companies. The presentations were led by Brad Hunter and Mark Thorson of AlixPartners discussing E&P companies, while the healthcare presentation was led by Jim Nugent and John Hemingway of Huron Consulting Group. The cash flow forecasting models were presented to over 60 Chicago-area professionals who attended the event, which was hosted at Freeborn and Peters in Chicago.

 

Brad Hunter of AlixPartners said “the Oil and Gas industry is often a patchwork of ownership interests and partnerships that creates complexity for understanding cash flows. Key assets of an E&P company are reserves; economic quantities of oil and gas that can be recovered. Once a well is “drilled” and “completed” and ready to produce, an important concept for cash flow modeling is well decline rates.” Mr. Hunter and Mark Thorson went on to describe the special circumstances behind forecasting cash flows in an E&P company.

 

According to Jim Nugent with Huron Consulting Group, “the purpose for the development and use of a 13-week cash flow forecast is the same in healthcare as in all other industries. Cash flow forecasting is a useful tool to create a cash culture, and to anticipate and manage liquidity levels, including identifying key dates and timing of liquidity shortfalls. The 13-week cash flow forecast meets the requirements of a lender or investor per a forbearance agreement or amendment or in negotiating such arrangements.” Mr. Nugent and John Hemingway presented other considerations involved with healthcare firms.

 

Event was a great success and we look forward to hosting future educational sessions within the Chicago Chapter.