How I Evaluate Working Capital Cycles in Seasonal Businesses
Seasonal businesses hide liquidity risks. I study working capital cycles carefully—inventory buildup, receivables, and payables—before closing any deal.
The Role of Seasonality in Small Business Cash Flow
Seasonality can make a business look stronger or weaker than it really is. I’ve seen buyers overlook seasonal swings, only to face cash crunches later. That’s why I always analyze how seasonality affects revenue, expenses, and liquidity before acquiring a business. In this article, I share how I evaluate seasonality and factor it into my acquisition strategy.
Why I Always Stress-Test Cash Flow Before Closing a Deal
Numbers on paper can look perfect—until reality hits. That’s why I always stress-test cash flow before closing any deal. I model different scenarios, test downside risks, and make sure the business can survive unexpected challenges. In this article, I explain my process for stress-testing, why it protects me as a buyer, and how it ensures long-term success after acquisition.