Search Fund Accounts Receivable (QofAR) Solver

Underwrite analyzing customer concentration and accounts receivable aging ledgers to establish normalized bad debt reserves and negotiate dollar-for-dollar working capital credits.

Reported A/R & Aging Ledger

Reported Gross Accounts Receivable ($ USD)

Receivables Aged > 90 Days Past Due (% - e.g. 18%)

Estimated Uncollectible Default Rate on >90d A/R (% - e.g. 75%)

Purchase Price Adjustment & Reserves

Required Pre-Close Bad Debt Reserve Write-Down

$378,000 Purchase Price Reduction

Normalized High-Quality Collectible A/R Balance

$2,422,000 True Collectible A/R

Net Cash Credit Transferred to Buyer at Closing

+$378,000 Direct Closing Cash Credit