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hi team in this video im going to teach you why working capital is absolutely critical by exploring the working capital adjustment to do this we will build and sell a fictional business in this short video because the working capital balances a business carries when its transferred to new ownership captures why this is so important perfectly i also thought i would share how this was brought to my attention early in my career a gentleman i was working for asked what i thought was the single most important item in a stock purchase agreement i started to respond and before i could say much he told me i was wrong lots of egos in finance and that the answer was purchase price he explained so many different people get their hands on the document as it circulated around as part of the negotiation process that he had seen the actual purchase price change on occasion which would be a terrifying little typo to inc then he asked me what i thought was the second most important item in a stock pu