Post Closing Working Capital Adjustment -Business Broker Terms

In a merger and acquisition deal involving a manufacturing company in Miami, Florida, a post-closing working capital adjustment was integral to the final agreement. The Business Broker helped establish a target working capital amount that the selling company was required to maintain through the closing date. Upon closing, an audit revealed that the actual working capital exceeded the predetermined target. Consequently, in accordance with the terms of the deal, the purchase price was adjusted upward, benefiting the seller for effectively managing the company's assets up to the transition. This adjustment ensured fairness and financial transparency, aligning the final terms with the actual financial condition of the business at the time of sale.