Working Capital Assistance

Avoid nasty surprises at the end of the deal.

In most transactions, the majority of effort is focused on identifying an appropriate target or buyer, conducting due diligence and arranging financing.

Surprisingly, even though it may represent a major portion of the purchase price, too often, the amount of working capital delivered by the seller to the buyer at closing isn’t negotiated until the end of the deal-making process. And problems can and do arise.

Pave the way to a successful closing
To avoid surprises and the possibility of stressful disagreements calls for seasoned mergers and acquisitions professionals who can help you systematically interpret the financial data, make sure the language in the purchase agreement is clear, and check to make sure the seller’s recordkeeping has been consistent and calculations surrounding working capital add up.

While we can help you at any stage prior to closing, it’s best to address working capital sooner rather than later.

Our services include:

• Establishing working capital targets
• Analyzing net working capital during the due diligence phase
• Reviewing the draft purchase agreement prior to closing
• Calculating closing net working capital
• Reviewing net working capital as initially prepared by the counter party
• Mediation or arbitration