When gearing up to sell your tire business, there are plenty of details to consider. How to handle working capital in the transaction is an important one.

Michael McGregor works on mergers and acquisitions in the tire industry every day. He discusses working capital with an analogy, comparing a business to a used car. The car’s engine needs oil and fuel to operate, just like a tire dealership needs inventory and cash to operate.

McGregor breaks it all down here in his latest video.