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.
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.
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.
Why I Always Verify Working Capital Needs Before Closing a Deal
Working capital can be the silent deal-breaker in small business acquisitions. If you don’t verify it before closing, you risk unexpected cash shortages that cripple operations after day one. In this article, I explain why I always verify working capital needs, how I assess the true requirements, and why this step protects both valuation and long-term stability in every acquisition I make.