Under generally accepted accounting principles or GAAP, working capital is defined as the difference between a company's current assets and current liabilities.

It represents the short-term liquidity available to a business and is a measure of its ability to cover its short-term obligations.

One thing for sellers to understand is that that they generally will not receive the top-line purchase price at closing.

So, what usually comes off the so-called closing waterfall before the balance is sent to the seller:

Debt, whether assumed or paid off (remember, the purchase price was likely calculated on debt-free basis.

In some instances, we work to obtain a pre-arranged financing package for potential buyers.

When you begin exploring buying or selling a business, you’ll inevitably come across the term “seller financing.” What exactly is seller financing?