An ownership transition needs a clear account of the assets and obligations transferring to the buyer. In his October 7 article, Don McClain, Founder of Medro Advisors, explains why the acquisition cash plan should reflect the agreed treatment of cash, receivables, inventory, payables, deposits and prepaid expenses. The article pairs those transaction details with a schedule of the buyer’s first operating obligations. For acquisition teams, the practical next step is to reconcile the agreement, closing schedule and operating forecast with the appropriate advisers before relying on funds assumed to be available after closing. Related reading: the forthcoming book FUNDED.
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