What is net working capital (NWC) and why are adjustments required in an M&A transaction? How do you determine the average working capital required for a business? If a business is declining or growing quickly, what are the best methods to calculate a working capital target? How do you negotiate a fair working capital adjustment? At what stage of the process do you begin to negotiate and analyze working capital trends?

In todays’ video we will review the high level definitions of net working capital and understand the process of calculating net working capital using a formulaic and processoriented approach best suited for small and midmarket businesses. We will also walk through two case studies and discuss the M&A process and timing in terms of when to begin negotiations.

Looking to sell your business and want to read up more on the selling process and tips to improve your exit value? Consider some of the following popular "how to sell your business" books which you can purchase on Amazon at the links below:

https://amzn.to/3Efixki The Art of Selling Your Business by: John Warrilow
https://amzn.to/3nt1khn Mergers & Acquisitions Playbook by: Mark Filippell
https://amzn.to/3E9bLwi How to Build a Business and Sell It for Millions by: Jack Garson
https://amzn.to/3pbEqvV Built to Sell by: John Warrillow

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! If you want to reach out, contact me at;

[email protected]

If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;

  / robertbe.  .

Roblee Capital is a Torontobased M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buyside M&A services. We work with Canadianbased business owners looking to sell their lower midmarket business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:

https://www.robleecapital.ca/