Private Equity Industry and Transaction Advisory Leaders Discuss Key Steps to Simplify M&A Working Capital
Working capital can be easy to define – current assets less current liabilities. But a lack of experience or proper procedures can quickly cause problems on either side of a transaction. The buyer or the seller could potentially face contentious post-closing disputes or even leave money on the table.
In the July/August 2018 issue of Middle-Market Growth, Transaction Advisory Partner Bryan Graiff and Transaction Advisory Principal Dan Schoenleber, leaders in the Private Equity Industry Group, discuss key steps to take to simplify M&A working capital in a transaction:
- Agree on the working capital definition.
- Calculate the working capital target.
- Make sure both sides understand the closing date cash impact.
- Verify during post-closing true-up.