January 22, 2025

Take Five #124: All about Net Working Capital (NWC) and how it impacts deals, and more

Take Five #124: All about Net Working Capital (NWC) and how it impacts deals, and more

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Take Five #124: All about Net Working Capital (NWC) and how it impacts deals, and more

1. Finance team framework, including roles to fill, when to hire, what to measure, and how to scale

The days have changed where you bring a heavy handed accounting hire in-house first. Accounting can remain a flex resource if you find the right firm.

This person should come from a finance, biz ops, or investment banking background. They’ll need to be great at financial modeling and can help the founder incorporate data into decisions. They’ll also be instrumental in helping to raise the Series A or B round.

A quote from a VC friend below:

“I’m actually seeing virtually no market for controllers right now. We have zero open req’s across [#] portco’s and recruiters are telling me the same. So the model where controller is the first to arrive has largely been changed and maybe permanently with the emergence of good small bookkeeping firms and products in the space that de prioritizes accounting.”

Don’t get me wrong - I love me some accounting. In fact, I show a heavy investment at later stages. It’s just the timing that matters if you want to get your finance function humming on all cylinders.

Read the rest of Mostly Metrics’ post here.

2. Some (not-so-exact) progress metrics for searchers

3. All about Net Working Capital (NWC) and how it impacts deals

4. Addbacks? When to use them and when not to…

5. Podcast Interview: First-time searcher cold-emails owner of a local nursery, ends up working out an acquisition deal

Loved what you read? Subscribe to Take Five to get our top quick reads every week from the team at Kumo. Kumo aggregates thousands of sources into one easy-to-use platform so that you can spend less time sourcing, and more time closing deals.