How working capital adjustments can affect the purchase price

It’s important to remember when buying a business that the agreed-upon dollar figure may not be the final price tag, says Toronto business lawyer Anton Katz.

“Many people think that when you buy a business, you just pay the amount you’ve agreed on and that’s it,” says Katz, principal of Anton M. Katz Barrister and Solicitor.

“But it’s not as simple as that. There needs to be an adjustment for working capital,” …

 

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