Working Capital True-Ups: Experiences and Best Practices

Thanks ^Searchfunder member‌. I would echo comments above. We look to tie-down the calculations early in the process. Firstly, so we understand any volatility and are confident we have the necessary headroom in the cashflows - for example this will partly drive our any prepayment 'holiday' discussions with the Lender. Secondly, so there is no gap in expectations come closing. For good order, as the deal advances we update the numbers monthly and share them with the sellers so there is plenty of opportunity for debate/negotiate pre-closing, We always insist on a protracted amount of time to finalise the completion accounts. This buys us time to fully go into the accounts and treble check that everything as it should be, whilst not being a major distraction from focusing on immediate operations. If we can pay earlier then we will. ... but ultimately, we stick to the pre-defined calculations and process.

helpful Ola!