Buying the Business and Its Building? Separate the Two Cash Requirements

By Don McClain | Founder & Principal, Medro Advisors When a business acquisition includes commercial property, put the property and operating cash requirements on separate schedules before combining them into a single sources-and-uses review. Identify property purchase costs and near-term carrying expenses separately from payroll, suppliers and other business obligations. Confirm which proposed funding source may cover each use and when it can actually be drawn. Do not count the same buyer contribution twice or assume an expected property financing closing resolves every operating need. Don McClain’s first-90-days review helps coordinate these decisions. Actual financing terms, availability and transaction allocations remain subject to the applicable documents and review.