I'm looking at submitting an LOI for a small (<1.5M revenue) manufacturing company. This is my first rodeo, so I'm looking for some crowdsourced knowledge about WC/cash treatment. Inventory will stay with the business and is included in the purchase price, but the cash won't.

That makes sense to me, since it's the prior owner who made that revenue. Question is: is that typically how it works? And would the price offered (multiple of SDE) be adjusted in any way for the low 6-figures of cash the owner will keep?