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Working Capital

August 2018 - This article originally appeared as a series on our firm's corporate law blog, lingua negoti. "Lingua negoti" means "the language of business," and the purpose of the blog is to transform the practice of corporate law so that legal issues do not get in the way of moving business and transactions forward.
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Almost every M&A transaction includes some form of working capital true-up, and yet many practitioners, including attorneys, accountants, and business development professionals, seem to struggle with this provision. In this article, Chris Hewitt discusses his perspective on the objective the working capital true-up should attempt to accomplish, and identifies and explains some of the most common problems that he has seen in his practice with this provision. 

Read the article here.

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