I'm negotiating an LOI with a Wholesaling company and they have excess cash in the bank beyond the 3 months working capital required.
I'm wondering how this cash is treated in the transaction, specifically does it reduce the amount I pay to the seller at close? For example if I'm paying the seller $2m and there is $200k excess working capital, doss the seller take home the $200k and I give the seller $1.8m at close?
Excess cash in company prior to close
by a searcher
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