The net working capital peg can become one of the most contentious negotiations in a transaction, especially when buyers and sellers disagree on what represents a “normal” level of working capital. A poorly established peg can quietly shift significant value from the seller to the buyer at closing.
In this session, we break down how the NWC peg is calculated, where buyers and sellers commonly disagree, and how brokers can help defend a fair and supportable number. We’ll cover normalization periods, seasonality, unusual balances, working capital adjustments, and how to prepare the seller’s financials before the peg becomes a last-minute fight.
