By Don McClain | Founder & Principal, Medro Advisors
Before a business sale, connect the proposed working-capital calculation to the underlying records and the transaction’s actual definitions. Preserve dated reports, explain unusual balances and identify assumptions awaiting agreement. Ask advisers to address review access and deadlines after ownership changes. A reproducible calculation helps the seller trace a question to its source instead of reconstructing the negotiation after closing.
Transaction-specific professional review is required. No financing or closing outcome is guaranteed.
