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Private Equity Funcast

10 Lurking Problems for Sellers with Bill Snow

Nov 29, 2023
Bill Snow, noted authority on mergers and acquisitions, discusses common problems sellers encounter in the deal process. Topics include ad backs in selling a business, owner succession, challenges with service-oriented businesses, the impact of rent on transactions, common mistakes in selling a company, and the importance of tax planning for sellers.
01:10:14

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Negotiating a reasonable working capital target is crucial for both parties in a deal.
  • Setting a fair and accurate rent is essential to reflect the true value of a business.

Deep dives

The importance of proper working capital target in a deal

Working capital target is a crucial aspect of a deal, as it determines the amount of cash needed to run the business after the sale. If the working capital target is set too high, it could result in a lower purchase price for the seller. On the other hand, if it is set too low, the buyer would need to invest additional cash. It is essential for both parties to negotiate a reasonable working capital target that accurately reflects the needs of the business.

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