Normalizing working capital sets the cash target you must deliver at closing. Here is the step-by-step calculation Southern California sellers use to protect their proceeds.
At a 6x multiple, a single disputed $50,000 add-back swings your sale price by $300,000. Here is the add-back multiplier effect, and how SoCal sellers protect every defended dollar.
Aggressive add-backs do more than get rejected – they make a buyer distrust your entire schedule. Here is what institutional acquirers actually cut, and why it costs you.
At three to five times earnings, the product-margin add-backs you defend in negotiation are worth six figures. Learn to document them so a buyer cannot strip them out.
Entity classification shapes deal structure, owner-comp add-backs, and the tax stack on your proceeds. Why the same gain can net seven figures less inside a C-corp.
