Search Fund Warranty & Return Reserve Solver
Underwrite analyzing historical RMA return rates and component failure curves to normalize product warranty reserves and negotiate closing purchase price credits.
Reported Sales & Warranty Metrics
Purchase Price Adjustment & Reserves
Required Pre-Close Warranty Reserve Deficit Adjustment
$420,000 Purchase Price Reduction
Normalized Annual Warranty Expense in Adjusted EBITDA
$490,000 True Annual Warranty Expense
Net Cash Credit Transferred to Buyer at Closing
+$420,000 Direct Closing Cash Credit