The how, what and why of selling your business: Understanding the impact of working capital | Dynamic Business – Small Business Advice – Forums | Dynamic Business Australia

Working capital can drastically impact your sale proceeds. Walk away with more by understanding how. 

My final article focuses on the role of working capital in the sales process – a topic I mentioned briefly in Part 1.

Working capital needs vary from business to business and there is no standard definition. But in general terms, working capital is the capital that is tied up to fund your day to day operations. The amount required usually increases in line with your business’s size.

While most business owners recognise that good working capital management can optimise cash flow and alleviate funding pressures, many fail to understand the critical role of working capital when they sell.

How does it affect your transaction price? 

Buyers and sellers typically have different ideas about how much working capital should remain in the business.

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The how, what and why of selling your business: Understanding the impact of working capital | Dynamic Business – Small Business Advice – Forums | Dynamic Business Australia:


For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.