Typically a WC target can be up to a year. However, in today's environment (especially looking at a steel fabricator), what are people seeing? Price increases to offset cost increases, inventory bloat, are materially increasing the working capital needs of a business.

So thinking about 90 days post close, why would I agree to a target that's already significantly below the last month or two's net working capital? Is that fair that seller gets that additional cash?

Or are people looking at a 2-3 month average? In my mind, they aren't delivering 'more' of anything just more expensive of the same quantities and I shouldn't have to relieve them of the bloat that happened on their watch?

I would love to hear how people are approaching this negotiation.