Sell Your Business with Working Capital Adjustment Example
We define a working capital mechanism that protects both buyer and seller at closing. It ensures the company has the right mix of assets, cash and accounts so operations continue on day one. Clear targets matter. If the agreed target level is missing, deals stall and disputes follow. Defining inventory, receivables and liabilities early keeps […]
Maximize Your Valuation: Sell to Private Equity
Selling your business marks a major life event. We have sold five firms over two decades. That experience guides our view. Owners face a complex landscape when weighing a majority sale. Many companies seek clarity on how equity partners change long-term plans. We cut through the noise. This article lays out the pros and cons […]
Contingent Liabilities That Can Sink M&A Deals
Contingent Liabilities That Can Sink M&A Deals Quick Answer Contingent liabilities that can derail M&A deals include undisclosed financial obligations, poor accounting records, compliance gaps, unresolved employee disputes, and unresolved contract issues that surface during due diligence. These hidden exposures erode buyer confidence and can cause deals to stall or fail, particularly when discovered late […]
Understand the Net Working Capital Peg in M&A Deals
Understand the Net Working Capital Peg in M&A Deals Quick Answer A net working capital peg is a closing-day benchmark that ties the buyer’s final purchase price to the actual current assets minus current liabilities (excluding cash and debt) delivered at closing. The peg, typically negotiated in the LOI, creates a dollar-for-dollar adjustment mechanism: if […]
How to Read a Quality of Earnings Report as a Seller
How to Read a Quality of Earnings Report as a Seller Quick Answer A quality of earnings report strips out one-off items and normalizes expenses to show your true sustainable cash flow and earnings power to buyers. As a seller, running this analysis before marketing lets you control the narrative, anticipate buyer questions, and defend […]
The Financial Cleanup You Must Do Before Selling Your Business
The Financial Cleanup You Must Do Before Selling Your Business Quick Answer Before selling your business, you must organize and update your financial statements, eliminate unnecessary expenses, and optimize accounts receivable to accurately reflect your company’s true financial health. Buyers and lenders rely on clean, accurate tax returns and P&Ls to determine valuation and approve […]
Is Your Business Actually Sellable? A Hard-Truth Checklist for Owners
Is Your Business Actually Sellable? A Hard-Truth Checklist for Owners Quick Answer A sellable business has predictable, owner-independent profit, a compelling growth story, and strong operational efficiency with minimal owner reliance. Key indicators include a stable customer base, financial health, clear growth potential, and position in a growing market; if your business lacks these, you […]
The Exact Checklist to Prepare Your Company for Sale in 90 Days
The Exact Checklist to Prepare Your Company for Sale in 90 Days Quick Answer A 90-day preparation checklist for selling your company focuses on four core areas: cleaning up financial records and tax documentation, optimizing operations and documenting processes, preparing marketing materials and financial summaries, and organizing legal documents for due diligence. Most founder-owned businesses […]
Private Equity Deal Sourcing: What Works in 2025
Discover the latest strategies for effective private equity deal sourcing in our Ultimate Guide. Learn how to identify and secure top opportunities in 2025.