Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Working Capital Definition Trap That Cost a Seller 28 Million
In this episode of The Acquisition Talk, Lucas and Luna dissect a recent mid-market deal that fell apart over a single disputed line in the working capital definition. A seller lost $28 million when the buyer recalculated 'normal course' to exclude a seasonal inventory build. They break down the two common definitions—'same accounting principles' versus the more precise 'identical accounting principles'—and explain why the phrase 'in the ordinary course' can be a ticking time bomb. Using the case of a specialty chemicals distributor, they show how a…
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