Mitigating the Risk of a Working Capital Adjustment
The working capital adjustment can be a significant component of the total consideration in the sale of a company. Negotiating the working capital peg early, along with other steps, will help reduce the risk of a smaller sale price.
Todj Gozdeck leads Marcum’s New England Transaction Advisory Services Group. He specializes in assisting both financial sponsors and strategic buyers and sellers in complex cross-border merger, acquisition and divestiture transactions.