Let's say your short-list of CMS vendors includes both public and private companies. How do you compare their financial viability? One frequently-employed tactic is to pull "Dun & Bradstreet" (D&B) reports, which at least indicate credit-worthiness. But there are limits to this approach. In one CMS selection we recently assisted, the prospective buyer purchased D&B reports on two finalists, both of whom in similarly cash-poor straits. One got a dismal score; the other received a stellar rating. It turns out that one is acting poor -- accellerating receivables and deferring payables -- while the other blissfully pays its bills on time. But perhaps the second company is just whistling past the graveyard. To be sure, D&B can tell you a lot of useful information about a potential supplier. However, we still think the best measure of viability in this economy is good old cash: cash holdings and cash flow...
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