Medro Updates

Don McClain Outlines the Cash Plan Beyond an Acquisition’s Purchase Price

By Don McClain

Medro Advisors Founder Don McClain examines the cash commitments that follow a business or property acquisition. His October 7 article separates purchase consideration, transaction costs, planned operating needs and a contingency reserve, then explains why buyers should match each use with a confirmed funding source and payment date. A clearly labeled hypothetical example shows the difference between the buyer’s contribution to the purchase price and the buyer’s total cash commitment. The framework encourages buyers to reconcile the budget with the transaction documents and test the effect of delayed receipts or added costs before committing. Related reading: the forthcoming book FUNDED.