Working Capital Adjustment

Working Capital Adjustment is a purchase price adjustment in an acquisition. A working capital estimate as of the closing date of the acquisition is agreed to by buyer and seller and then within a short period after closing (usually 60 or 90 days), the actual working capital as of the closing date is calculated and compared against the estimate. The purchase price is typically adjusted up or down based on the difference of the actual working capital and the working capital estimate.


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