How Working Capital and Leverage Affect a Merger and Acquisition Deal

One of the most contentious business deal points in the sale of a business is the negotiation of the working capital provision.  When selling a business, business owners are often surprised to hear that they have to leave a requisite amount of working capital so that the buyer can run the operations of the former company the very next day, in a seamless manner.  The following article provides a good understanding of why this is necessary and how to determine a “requisite” working capital amount.  Click here to read the article.  


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