The Myth:
Working capital is separate and doesn’t affect valuation.

The Reality:
Most deals assume a normalized level of working capital included in the sale. A business without sufficient working capital is like a car without gas — operational but not functional.

Why It Matters:
Missing working capital adjustments can cause major surprises during deal closing or loan funding.

Practical Tip:
Always assess and normalize working capital when valuing a business — and include it in deal terms clearly.