I have adopted several formulas when reviewing companies for either buy or sell opportunities. One of the most important is liquidity. Having cash to operate the company is vital, and I would argue having a minimum of 25% of net worth as cash is a solid metric to maintain. It is a formula – but all companies are slightly different and may exhibit variances, but if you do not have the cash to cover a secondary market loss, you could be putting the value of your company in danger.