BALANCE-SHEET-READING5 MIN READ
Ask Better Questions About Book Equity
Separate capital cushion, market value, and liquidity when discussing equity.
Maya M CFO 1 Observe 2 Implication 3 Question A founder points to positive book equity and says the company is worth more than enough to raise debt. The lender needs a different conversation. The room needs a read, not a lecture. turns principle Ask Better Questions About Book Equity Use O-I-Q: observe the number, state the implication, then ask the question that would change the read. Book equity is a starting cushion, not a recovery promise. Maya asks for the balance-sheet fact behind your concern. Your reply?
Read the full lesson
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in