Capital Insights

Acquisition Planning: Reconcile Closing Cash with the First 90 Days

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors

An acquisition funding plan should connect the closing funds flow to the buyer’s first 90 days of operations. Review which cash transfers, which obligations the buyer assumes and when proposed financing becomes usable.

Keep a weekly cash calendar alongside the purchase-price calculation so the same contribution is not counted both at closing and as an untouched operating reserve. Assign an owner and due date to each unresolved assumption.

Don McClain’s new acquisition-readiness series covers operating liquidity, the first-payroll handoff and warning signs that should trigger a decision. Transaction-specific allocations and financing conditions require review by the appropriate legal, accounting and financing professionals.