Going Deep with Aaron Watson cover image

570 Mergers & Acquisitions Advice w/ David Tobin

Going Deep with Aaron Watson

CHAPTER

The Importance of Working Capital in M&A Negotiations

In most situations, there's much more energy into the terms in the actual price. The seller's balance sheet becomes a very important element of the negotiations. If they're going to pay you a multiple of earnings, their expectation is you've got to leave some working capital. That could be receivables and so forth.

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