When doing a 100% LBO, we use the following terminology in our LOI for NWC - "The Purchase Price will be adjusted up or down to the extent that the Company’s net working capital at closing is greater than or less than a normalized working capital target to be mutually agreed upon in the definitive agreements."
What terminology should be used in the LOI for NWC when the seller is rolling equity and retaining minority ownership?
NWC combined w/ rolled equity
by a searcher
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