Canada:
What's Your Number?
06 May 2019
Clark Wilson LLP
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When it comes to selling their business, business owners
frequently focus only on the sale price, to the exclusion of the
sale terms. This is a serious mistake because the sale price,
while an important number, isn't the most important number to
focus on. The most important number to focus on is how much money
you end up with after all terms have been complied with, and this
can be different from the sale price.
One good example of this principle at work is the concept of the
"working capital adjustment". I call the working capital
adjustment the "secret" way to get a higher price (if
you're a seller) or the "secret" way to get a lower
price (if you're a buyer). Let me explain.
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