Michael is a Commercial Banker with Huntington Bank. Based out of Indianapolis, Michael works with businesses and organizations with values up to $50 million to help them purchase other businesses or production equipment. Whether it’s a corporate startup or nonprofit or a church, Michael will analyze financials and risks to determine if the loan should be approved.
Transcript
So I'm Michael Parent, I'm a commercial banker with Huntington Bank. We're headquartered out of Columbus, Ohio but I work in Indianapolis. So, day to day operations of what I do is basically any business that wants to purchase another business, wants to buy equipment, wants to put in some sort of line of credit for liquidity needs, wants to buy vehicles, whatever they do that they need money for I'll help them buy it. I don't have a specialty. So, I'm 50 million in revenue and under. So, I guess if you can consider the size of the business a specialty, then that would be it. But I've got anywhere from churches to metal stamping companies, to non-profits. I've got a guy who manufactures window film tint. So, I mean, anything and everything that you can bank, then they're a customer. One of the first questions, just get to know them. How'd they start, how long have they been in business, and what they really do. I mean, sometimes you think you know what they do off a website or off of like a research software that we have but really it's just an introduction, it's questions, hey what do you do? I've done research, this is what I think you do, is that right? What else do you do? That's how you start. And then you go into, okay so how profitable were you the past three years? What's 16 look like? What's 2017 gonna look like? What about the next three years, What about the next five years? And the goal is to kinda get 'em dreaming a little bit about where they wanna take the company. And then once you get to that point, then you kinda build credibility like oh you're a partner now. And so after that we'll look at financial statements, we'll go over all that good stuff. And then we'll sit down... Try to take care of their needs. I mean, if they wanna buy a business then we gotta look at that business they wanna buy. Is it profitable? Do they have experience in the industry? Are they gonna be able to run that themselves? Are they gonna need to hire help? And stuff like that. So it's really a lot of fact finding. In banking you have to have every detail. But really what you're lookin for, there's a lot of key indicators or key performance indicators, KPI, of a successful company. One is do they have enough cash to support them for six months to a year? That's a good indicator. Then you're looking at debt to equity. And then you're lookin at cash flow. And based on the amount of debt in their annual payments, do they make enough money to cash flow it? Basically what comes in, is that enough to pay us and make a profit?
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