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How would closing working capital change the purchase price?
Compare a simplified closing operating working-capital balance with the agreed target peg.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Eligible closing receivables
- $1,500,000
- Eligible closing inventory
- $2,000,000
- Other included operating current assets
- $200,000
- Included operating payables
- $1,200,000
- Other included operating accruals
- $400,000
- Agreed normalized working-capital peg
- $2,300,000
Modeled purchase-price adjustment
Example result only, not a forecast or promise.
- Included closing operating working capital
- $2,100,000
- Agreed working-capital peg
- $2,300,000
- Included operating liabilities
- $1,600,000
What to do with this result
Use the purchase agreement’s exact inclusion rules, reserves, seasonality and accounting policies; do not include cash or debt unless the agreement says so.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Closing operating NWC = included receivables + inventory + other operating current assets − payables − included accruals. Price adjustment = closing NWC − agreed peg.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Planning scenarios are not lending, investment, tax or legal advice. Rates, prices, probabilities and transaction terms are supplied assumptions.