Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Working Capital Peg Trap That Cost a Seller 22 Million
In this episode of The Acquisition Talk, Lucas and Luna dissect an M&A deal where a working capital peg clause quietly shifted $22 million out of a seller's pocket. Through the story of a mid-market industrial distributor, they show how the peg—often a single line in the purchase agreement—can become a weapon when inventory is misvalued or the target's cash conversion cycle shifts. They explain the mechanics of net working capital, the role of the closing statement, and why sellers need to negotiate the peg definition as carefully as the price. A must-listen for anyone selling a…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.