The Net Working Capital Peg for Founders

About this episode

Kirk Michie explains the importance of understanding the net working capital peg when selling a business.

When business owners think about selling their company, most of their attention goes to valuation and purchase price. But one overlooked deal term can create surprises after closing. In this short video, Kirk Michie explains what a net working capital peg is, why buyers require it, and how it can affect the amount of money you ultimately receive from a sale. Before you sign a letter of intent, make sure you understand how this provision works and what it could mean for your transaction.

People in this episode

Host: Kirk Michie

Topics covered

• net working capital
• business sale
• valuation
• purchase price
• deal terms

Keywords

• net working capital peg
• business owners
• selling company
• buyers
• letter of intent

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