Thursday, November 2, 2023, 1:30 - 3:00 PM (Eastern)

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The principal cause of AEC firm failure is often said to be under capitalization. Your firm can be highly successful and profitable, but still run out of financial capital. Architects, engineers, and contractors are trained to build buildings and solve technical problems, not how to finance a business. Often their accountants can’t tell them how much capital they need. There is even confusion about what financial capital is.

As a firm leader, you are responsible for the success of the firm. The livelihood of your staff depend on your ability to manage the firm. You need a solid understanding of the financial foundation of the firm, its capital.

In this presentation we discuss the basics of financial capital for privately held AEC firms, including:

• Define capital and capitalization.
• Explain why capital is necessary for AEC firms.
• Discuss what drives how much capital an AEC firm needs.
• Explain the different types of capital for privately held firms.
• Explain how capital affects the risk profile of your entire firm.