The sum total of all funds required to complete a business purchase transaction.

Typical project costs include:

• Business purchase price.
• Working capital.
• Closing costs.
• Professional fees such as those charged by the CPA and attorney.
• Lender fees.
• Business appraisal fees.
• Business license fees.

You need to set a budget for the business purchase which includes all expenses. In asset business purchases, the seller typically retains cash and short-term investment assets. The buyer then will need to inject additional funds into the business to ensure that it has sufficient working capital.