Glossary
Working Capital
Current assets minus short-term liabilities, mainly inventory and receivables minus payables to suppliers. The purchase agreement often sets a normal level so the company stays liquid after the handover.
Related termDue DiligenceThe careful review of a company before a purchase: figures, contracts, taxes, staff, equipment and risks.Next Read moreTake over or start a company: What's a better fit for you.Next
FAQ
Frequently asked questions
What is working capital?
Current assets minus short-term liabilities, mainly inventory and receivables minus payables to suppliers.
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