Q+A: Buying a Seasonal Business

This one comes straight from audience questions about businesses whose sales ebb and flow through the year. A working capital peg is an average, which means your real needs will sit above it for months at a time. Heather Endresen and Will Smith talk through why seasonal businesses should close at the start of the busy season, how to build a monthly working capital forecast from a couple years of the seller’s monthly financials, and why heavy seasonality alone can make a bank walk away from a deal.