Cash Accounting Working Capital

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from George Mason University - School of Business
in McLean, VA, USA

1yr ago

Cash Accounting Working Capital

For a Main Street business around 1.5M in rev, and using cash accounting, does anyone know a good way to estimate working capital requirements? For my LOI, I indicated 'Work in Progress" not yet invoiced and inventory as my working capital, because accounts receivable does not exist, and accounts payable is paid up monthly. Let me know your thoughts on this matter.

1 Like

387 Views

reply by a professional 1yr ago
from Tulane University in Portland, ME, USA

I’d be happy to help you with this. As a CPA and ex-PwC pro, I bring top-tier QoE/FDD service. My mission has been to bring that same level of quality and sophistication but tailored to meet the needs of the lower middle market.

reply by a searcher 1yr ago
from The University of Chicago in Los Angeles, CA, USA

Enrique - I think it is a good exercise to try to figure this out on your own with models since understanding and managing working capital is key to effectively running a business. That said, depending on the industry it can be a bit complicated. I would reach out to somebody with experience as last thing you want is to over estimate working capital or even worse underestimate it and come up short right after you bought the business.