Why Working Capital Can Change the Outcome of Your Business Sale

Episode notes

This is the audio version of “Working Capital in a Business Sale: What Owners Miss.” In this episode, Sara Vaziri and Raymond Skaug discuss why working capital becomes such an important part of buying and selling a business. They break down what working capital means, what is typically included, and why buyers pay close attention to inventory, accounts receivable, accounts payable, cash flow, and the working capital peg during a transaction. Raymond explains why a profitable business can still create cash problems after closing, especially when receivables are slow, inventory turns unevenly, or the buyer needs operating cash in the first 90 days. They also discuss how cash management, vendor terms, excess inventory, obsolete inventory, and receivable collection can affect buyer confidence, business valuation, and deal readiness. Key topics: • Working capital • Business sale preparation • Business valuation • Cash flow management • Profit vs.

• A 27-Year Business Failed Before Retirement - Here’s What Went Wrong40 / 100
• How a PEO Helps Business Owners Reduce HR, Payroll, and Compliance Risk 50 / 100
• GAAP Accounting for Business Owners: Build Buyer Trust Before an Exit 50 / 100
• Business Valuation Explained: EBITDA, Risk, Multiples, and Value Drivers
• Exit Planning for Business Owners: Build Value, Reduce Risk, and Prepare to Sell