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Is it typical to with hold the A/R from the selling price?

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small biz sales are different from Wall Street. Working capital should be considered part of the purchase price for the buyer. Whether its included by the seller or the buyer has to replace it, its certainly a part of the capital requirement when acquiring a business.

My suggestion is that you make two offers, one including all current assets and liabilities and one without. If you try to divide up the AR and AP you have a recipe for disagreements after the deal is closed.

May 27, 2009

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