Determining Working Capital Adjustments Using a Bardahl Analysis

Business Valuation UpdateVol. 29 No. 9
September 2023
normalization, working capital, balance sheet, excess working capital


During a recent conference, the issue of adjusting for working capital came up and the audience seemed unfamiliar with the Bardahl analysis. Here is an excerpt from Gary Trugman’s Understanding Business Valuation, 6th edition, which gives some very practical advice on how to use this analysis.