The Working Capital Peg That Cost a Seller 2 Million

The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators · Jul 12, 2026 · 8m · transcript

In M&A, the working capital peg seems like a boring accounting detail — until it decides whether you walk away with cash or a haircut. Lucas and Luna dissect a real mid-market deal where a manufacturing company's seller lost over $2 million because the working capital target was set six months before closing. They break down the three ways a peg can shift against you, how normalized net working capital is calculated, and why smart sellers negotiate a rolling peg tied to the trailing twelve months. If you're selling a business, this episode might save you from leaving seven figures…