On both sides of the negotiating table, there is give and take throughout the process until both the buyer and seller are mutually satisfied (or dissatisfied as the case may be) with the outcome.
We have been fortunate to enjoy one of the country’s longest periods of economic growth on record. However, every economic boom must inevitably go bust. That means we can likely expect a recession at some point in the future, even if we cannot say with certainty when it will happen.
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The working capital target concept is fairly common in M&A transactions. In fact, we have experienced this concept in nearly every transaction that we have participated in over the years.
These are the recommendations we find ourselves imparting repeatedly to the sellers with whom we work throughout the sale process. This advice is not only universal, it is timeless. While we don’t have a trove of words of wisdom ready to share with sellers at a moments’ notice, these encompass the recurring ideas and guidance that we have consistently shared with sellers over the years.