M&A Deal Tips #6: M&A Attorney Scott Bleier explains why working capital is a vital piece of the M&A transaction. What is working capital? In its simplest definition, working capital is current assets over current liabilities. Buyers want to buy a business with enough working capital to keep this going without an immediate need for a cash infusion. Sellers, conversely, don't want to sell the business with too much working capital or cash — as they want to realize as much profit as possible. So how do you negotiate a target working capital amount for 2 or 3 months? And what happens when disputes arise over the working capital postclosing? Drafting and negotiating a proper working capital adjustment is an important component of the M&A deal, and one Morse, BarnesBrown & Pendleton attorneys have the experience to provide their clients.

View Scott Bleier's attorney bio here:
https://www.morse.law/attorney/scott...

For more resources on M&A transactions, please see:
Mergers & Acquisitions Practice
https://www.morse.law/practice/corpor...

See also:
Top Ten Issues in M&A Transactions
https://www.morse.law/news/issuesin...