Buying a Business: Making an Offer

We have talked about how to go about selecting a business. You get that none are perfect and that you will never have enough information to feel 100% confident about your choice. You have decided that all things considered—after reviewing the documentation provided by your broker, your meetings and discussions with the business owner and your personal visit to the business—a business will work for you.

How Does Working Capital Factor into the Purchase or Sale of a Business?

As a buyer, you are excited about the opportunity to purchase a business and confident you have enough money for its purchase. But do you have enough money to keep it "working?" If you plan to grow the business, do you have enough working capital to fund its growth? Growing businesses require more working capital than shrinking businesses as receivables are growing.