Working Capital is the difference between current assets (which includes cash, accounts receivable, and inventory) minus current liabilities such as accounts payable. For larger deals over $1 Million in the sale price, working capital is often included in a buyer’s offer, particularly if the buyer is a private equity firm. When working capital is included it usually specifies an amount that of working capital that is at a healthy level to run the company and pay the bills without financial pressure. When working capital is not included in the sale price of a business, then the buyer either needs to have sufficient working capital on hand to run the business when they take over or a bank can provide working capital financing.