When selling your business in the lower middle market (more than $2 million in enterprise value), the value is usually based on a financial calculation — a multiple of EBITDA (earnings before interest ...

Cash and cash flow are critical to the health and viability of any company. When companies generate sufficient cash flow from operations to fund their day-to-day business operations, they reduce their ...

Purchase price adjustments continue to be commonplace in M&A agreements. In the 2019 study, they were included in 95% of reported deals. Working capital is the most common purchase price adjustment ...

Businesses need working capital to cover their day-to-day operational costs such as equipment and salaries. The amount of working capital a business has depends on inventory management, debt ...

Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...

Working capital measures financial health by subtracting current liabilities from assets. A current ratio above 1 indicates adequate working capital, reflecting company stability. Excessive working ...

The extent to which an increase in revenue will affect your company's working capital depends on how efficiently your business operates. If your company is already profitable, then more revenue should ...

A business can have great products, strong sales, and even loyal customers, but without enough working capital, things can quickly stall. Better management of working capital can improve a company's ...

Parties to a business transaction, whether structured as a purchase of equity or assets, typically agree on a method to adjust the purchase price based on the net working capital of the acquired ...

A working capital loan is generally used to fund the everyday expenses of a business, such rent and utility bills, wages, materials and support services. This sort of loan can be secured (where the ...