AGING RECEIVABLES BEYOND WORKING CAPITAL PEG
Would love some thoughts on treatment of receivables beyond what would be included as working capital as part of a deal.
I'm looking at a company that services the construction market - end customer is developer/gov/pe firms etc.
Enterprise value is ~$9m. A/R is $2.5m. I would be receiving ~$750k as part of the work cap peg. I don't want to buy out aging receivables or receivables at all beyond the peg.
Is escrow an option? How is this typically handled? Any thoughts would be really helpful.
Thanks in advance for the feedback!