Who can help me better understand cash flow of an ad agency?

July 24, 2023

by a searcher in Loudon, NH, USA

I'm talking with the owner of a 10 person advertising agency looking to exit. We've negotiated potential deal terms and I've seen a trailing 12 month P&L as well as some income projections. However, I need help better understanding the cash flow, estimating working capital needs so that if I were to close this transaction, I have minimized my risk of running out of cash because I 'thought' I knew what I was doing when it came to financial due diligence. Thanks.

Reply by a professional
from Bentley College in Miami, FL, USA

I'm sure you'll get plenty of options here in the community. If you'd like to expand your search, check out DueDilio. I am sure we have someone in our marketplace who can assist you. https://www.duedilio.com

Reply by a searcher
from University of South Carolina in Great Falls, VA, USA

I've sold a few agencies over the years. Feel free to dm me if you'd like to chat but cash flow generally depends on the type of services and clientele. I used to go after large enterprise clients which was great for billables but sucked on AR as they constantly pushed past 90 days.

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