How many of you are being asked to PEG Net Working Capital in your Letter of Intent v in Due Diligence? Seeing a growing trend by brokers to encourage pegging in LOI to provide greater comfort/understanding to sellers.
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On larger deals, we typically don't see NWC pegged in the LOI, but if one buyer pegs it then we'll typically ask others in the running to do same. Assume we've provided monthly financials for a long enough time frame to calculate it.