Search Fund Working Capital (NWC Peg) Solver

Underwrite negotiating normalized working capital pegs in private equity acquisitions, identifying seasonal inventory swings and unearned deferred revenue to protect buyer purchase price.

Target NWC Peg & Closing Actuals

Agreed Contractual Target NWC Peg ($ USD - e.g. $850,000)

Closing Date Normalized Current Assets (AR + Inv)

Closing Date Normalized Current Liabilities (AP + Accrued)

True-Up Adjustment & Closing Impact

Actual Normalized Net Working Capital at Closing

$630,000 Delivered at Close

Net Purchase Price True-Up Cash Adjustment

-$220,000 Purchase Price Reduction (Buyer Credit)

Working Capital Target Deficit / Surplus

$220k Shortfall Funded by Seller at Close