Net Working Capital Adjustment, Net Working Capital Target, Transaction Terms

The Working Capital Adjustment, Part I

After months of negotiations have resulted in an agreement on purchase price, it’s easy to think that everything important has been decided in an M&A transaction. But that’s not the case. In my career, I have routinely found that many key terms involved in a deal between buyer and seller often come as a surprise to bootstrapping entrepreneurs. As a deal gets into serious due diligence, bankers and lawyers begin to circulate drafts of definitive deal documents. The documents are dense. So it’s easy to miss that…
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