Primer: Net Working Capital in M&A Deals
In M&A or majority control transactions, Net Working Capital (NWC) of the selling company impacts the purchase price in over 80% of the transactions per SRS if not managed correctly.
Allied Advisers authored this article as a primer to explain what NWC is, how it is calculated and how it impacts the purchase price so entrepreneurs and CEO’s can navigate thoughtfully through the nuances of NWC that comes up in transactions. An experienced advisor can help negotiate and resolve NWC issues.
