Keep an Expected Seller Adjustment Separate From Available Operating Cash

By Don McClain | Founder & Principal, Medro Advisors

An estimated purchase-price adjustment does not establish cash available for payroll or supplier payments. After a business acquisition, label the amount and status of any seller settlement and map actual payment dates against expected collections. Review proposed financing separately, including its conditions and permitted use. Don McClain’s new acquisition series explains how to identify a cash gap without counting an uncertain future settlement as money already available.

Transaction-specific professional review is required. No financing or closing outcome is guaranteed.

More from Business Funding