When selling your business, generally the purchase price is determined as a multiple of the earnings. However, before the transaction actually closes, the seller can manipulate various aspects of the company without any impact to the company’s underlying earnings. In essence, they can impact the purchase price by playing games with the buyers. As a result of this, most savvy buyers demand that there are some safeguards. These safeguards include something called a working capital hurdle. In this episode Gower Idrees, CEO of RareBrain, offers insights into working capital and other adjustments during a business sale.