Mergers & Acquisitions
Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.
Adjustments to the value of working capital, made after the closing, that affect the purchase price.
If the estimated working capital is $500,000 upon acceptance of a letter of intent (LOI), but the working capital amount is calculated at $300,000 after the closing, then the purchase price is reduced, or adjusted, by $200,000.
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