Learn to Avoid the #1 Reason Acquisitions Fail

Most first-time buyers focus on the purchase price and the SBA loan.

But the most common reason acquisitions fail after close is running out of working capital in the first year of ownership.

Andrew Hippert and Daniel Duran of Acquisition Lab walk through the options to increase cash on the balance sheet at close, how to estimate what the business will actually need, and the financial model the Lab uses with members to size the working capital requirement before signing.

You'll hear:

• The five ways to fund working capital at close: searcher equity, investor equity, working capital from the seller, permanent working capital from the bank, and lines of credit
• How to estimate the working capital your business will actually need in year one
• The financial model Acquisition Lab uses with members, walked through live, including how to add in the variables of what the business needs through the transition
• Common misses in first-time buyer working capital estimates
• How to spot an under-capitalized deal before signing

You’ll leave with a practical framework for making sure your acquisition has the cash it needs from day one.