An agency valuation I completed recently came in considerably lower than the agency owners expected. The reason? Their balance sheet was very poor and they were materially out of trust: Meaning that their ratio of Accounts Receivable + Cash to Accounts Payable was less than 1. The agency principals were quite upset that I would decrease their value for this reason. They retorted, “We always pay our companies on time, our companies have never been hurt by this, our customers have never been hurt by this, and our CPA has never found fault with this practice. You're the only one who thinks it matters!”

TRUST YOUR EMPLOYEES AND INCREASE REVENUE! by Grace Bauer Are you still trying to find more time to sell? Every agency principal asks the same question: 'When am I going to have more time ...

TRUST: ITS THE BOTTOM LINE by Chris Burand Do your customers trust you - and, if so, what for? Wal-Mart is known for low prices. A very young boy was heard ...

Dear (Customer Name): You've always trusted my advice because I've worked with you.