Chris Barrett

When you begin your journey toward buying a small business, it’s easy to get caught up in the latest trends, or to think you need to follow whatever the latest tech startup or industry favored by private equity is. The truth? Opportunity is everywhere. Right in your hometown, small business owners are running laundromats, roofing companies, bakeries, plumbing services – and generating wealth. They aren’t succeeding because they all got swept up in the latest industry hype: they’re succeeding because they chose the right business for their particular skill set.

Buying a business is an exciting milestone, but it’s only the beginning of your entrepreneurial journey. The real work begins after the deal closes. While many buyers focus on acquisition tactics, few are prepared for what happens next: the transition. Without a solid business acquisition transition plan, the success of the purchase—and the future of the business—could be at risk.

One of the most common questions business buyers ask is, “How much working capital should I include in my deal?” It’s a critical concern—because if underestimated or miscalculated, working capital can derail even the most promising M&A transactions.