Search Fund Working Capital Dispute Settlement Solver

Underwrite 90-day post-closing balance sheet reviews, defending against seller working capital shortfalls through contractual indemnity escrows and GAAP adjustments.

Target Peg & Closing Actuals

Contractual Target Working Capital Peg ($ USD)

Delivered Closing Working Capital ($ USD - e.g. $920,000)

Seller Indemnity Escrow Held in Trust ($ USD)

Deficit Settlement & Net Clawback

Net Working Capital True-Up Shortfall Deficit

+$330,000 Cash Deficit Due to Buyer

Seller Escrow Account Protection Coverage

100% Fully Covered by $500k Escrow

Net Working Capital Cash Released to Buyer

+$330,000 Direct Cash Inflow