Acquiring a Seasonal Business Before Low Season - Advice Needed

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August 11, 2025

by a searcher in Denver, CO, USA

I’m curious if anyone here has closed on a seasonal business right before its slow period. In my case, it’s a smaller deal, and my biggest concern is the cash flow squeeze the business would face right out of the gate. I’d love to hear how you’ve approached: timing the close to reduce risk and negotiating working capital Any insights, stories, or “lessons learned” would be hugely appreciated. Thanks everyone!
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Reply by a searcher
from University of Pennsylvania in West Chester, PA, USA
I agree with the other Jeff. Key is to understand the working capital needed to get to the busy season and integrate that into the purchase price.
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Reply by a professional
from University of Michigan in Detroit, MI, USA
Hi ^redacted‌, we've typically addressed this issue using the tools you mention. If you want to close on the eve of the slow season, you have to make sure that you have sufficient working capital to make it to the busy season. Get out in front of this issue early. If you need the seller to leave that working capital in the business at close, the seller could see it as a money grab (which is incorrect but somewhat understandable if the seller has been badly advised). Alternatively, you can sign the purchase agreement but delay the closing until closer to the busy season. Again, get out in front of this issue. Have the conversation with the seller now.
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