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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-$200,000

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.

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