How Net Working Capital Impacts the Value of Your Business
PCE Investment Bankers explains how Net Working Capital (NWC) impacts your bottom line in a business sale. This video covers:
Importance of NWC Target: A key element of your Letter of Intent (LOI) setting purchase price adjustments.
Calculating NWC: Understanding current assets, liabilities, and essential exclusions.
Impact on Proceeds: Excess NWC delivers additional cash, while shortfalls reduce the purchase price.
Mitigating Risk: Strategies to manage NWC and achieve a smooth closing.
Learn more: https://bit.ly/net-working-capital-im...
Contact us: https://bit.ly/jim_fray
Visit PCEs M&A University: • M&A University
Chapters:
0:00 Intro
0:14 Working Capital Target
0:58 Excluded Items
1:43 Marketing Process
2:17 Working Capital Example