In this episode of Bundy Group Insights, Clint Bundy and Stewart Carlin explore a critical but often overlooked topic in M&A: how the balance sheet factors into a business sale. While purchase price usually takes center stage, the structure and components of a company’s balance sheet can have a significant impact on deal outcomes.

The episode covers key areas such as tangible and intangible assets, real estate ownership, cash-free/debt-free transactions, and net working capital. Using relatable examples and clear explanations, Clint and Stewart provide a framework to help business owners understand what buyers look for and how to prepare their company for sale.

Listeners will come away with a better understanding of how balance sheet preparation can influence valuation, negotiations, and closing proceeds.

Key Takeaways

1. Balance sheet components—like net working capital—are often deal-critical yet neglected early in M&A conversations.
2. Sellers who understand and prepare their balance sheets proactively often realize better outcomes at closing.

Episode Highlights

• Tangible vs. intangible assets and their role in valuations
• How to handle operational real estate held in a separate entity
• The implications of cash-free, debt-free structuring
• What 'net working capital' really means and how it’s calculated
• Why having the right advisory team makes a measurable difference

Listener Insights

• How balance sheet structure directly impacts deal proceeds
• What buyers are really looking for when they analyze financials
• The meaning and mechanics of a net working capital peg
• Pitfalls to avoid in real estate and working capital structuring

Learn more about the Bundy Group by visiting bundygroup.com.