When selling your business in the lower middle market (more than $2 million in enterprise value), the value is usually based on a financial calculation — a multiple of EBITDA (earnings before interest ...

Net working capital is calculated by subtracting a company's current liabilities from its current assets. This measure gives an idea of a company's short term capital and its ability to quickly ...

Cash and cash flow are critical to the health and viability of any company. When companies generate sufficient cash flow from operations to fund their day-to-day business operations, they reduce their ...

Unpaid salaries are part of current liabilities and included in working capital calculations. Paid salaries do not impact working capital since they're not current liabilities. Working capital is ...

Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

Barclay Palmer is a creative executive with 10+ years of creating or managing premium programming and brands/businesses across various platforms. Thomas J. Brock is a CFA and CPA with more than 20 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and ...

Working capital is a company’s operational cash for daily functions like bill payments, supply purchases and ensuring smooth operations. Working capital is the money that a business uses for its ...

A working capital loan is generally used to fund the everyday expenses of a business, such rent and utility bills, wages, materials and support services. This sort of loan can be secured (where the ...