Tag: cash flow

Blog, Private Equity & Business Buying

The Importance of Understanding Working Capital in Small Business Acquisitions

Working capital is one of the most misunderstood parts of small business acquisitions. I’ve seen deals fall apart—or become unprofitable—because buyers didn’t fully understand the timing of receivables, payables, and inventory. In this article, I share why working capital matters, how I evaluate it in due diligence, and why it’s essential for ensuring long-term liquidity and stability.

November 10, 20254 min read
Blog, Private Equity & Business Buying

Why I Treat Cash Flow as King in Every Acquisition

If there’s one lesson I’ve learned in acquisitions, it’s this: cash flow is king. Revenue and profit projections mean little without strong, reliable cash flow. I focus heavily on understanding how money actually moves through a business, testing different scenarios, and ensuring liquidity can withstand downturns. In this article, I share why cash flow dominates my acquisition decisions and how it shapes the price I’m willing to pay.

October 26, 20254 min read
Blog, Private Equity & Business Buying

The First Metrics I Study When Looking at a Potential Acquisition

When I evaluate a potential acquisition, I don’t start with lofty projections—I start with the fundamentals. Cash flow, margins, customer concentration, and recurring revenue are the first numbers I study to see if a business is healthy or hiding risks. In this article, I share why these metrics matter most, how I interpret them, and how they guide my acquisition decisions.

October 25, 20254 min read
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