Buying a Business: Cash

Typically, cash is not transferred during a business sale. In an asset sale, the owner keeps his/her corporate entity, and all bank accounts, plus cash. Even in a share sale (when the buyer takes over the legal entity), the cash balance is typically stripped down to a...

Buying a Business: Accounts Receivable

Accounts receivable may or may not be part of a business sale. Where it is left in, it is typically matched up with the payables (i.e., the buyer takes over the receivables and pays the payables). Specific things to look for when you examine accounts receivable are:...

Buying a Business: Inventory

Unlike cash, inventory is almost always sold with an active business. However, just because it is included in the sale doesn’t mean it is included in the price. A price for a business is typically stated "$x plus inventory" This is usually done...