Before you negotiate working capital in a business sale, consider the records and responsibilities involved. New Orleans Business Brokers Base can connect you with a valuation partner.
Define the assets and liabilities included
An asset purchase may leave cash and receivables with the seller, but the agreement controls. Identify inventory, deposits, prepaid costs, receivables and payables one category at a time.
Do not use cash free, debt free as a substitute for a working capital definition. The buyer still needs money and usable assets to operate after closing.
Model a normal operating cycle
Use monthly balances to show seasonal cash needs. A low point chosen just before closing may not fund payroll, stock purchases and supplier bills for a new owner.
For advance payments, connect customer deposits to the work still owed. An unrestricted bank balance can contain money needed to perform obligations after the sale.
Agree the adjustment mechanics
Ask counsel to document the target, calculation method, closing estimate and later true up. Define how disputes and slow collections will be handled.
Compare offers using the cash you retain after debt payoff, fees, taxes and any capital left behind. A higher headline price can still produce less cash at closing.
Use the estimate form to start a private conversation, or call (504) 555-0176.