The Working Capital Adjustment | Introduction

The working capital adjustment in a stock purchase agreement can have a direct impact on the price paid for the business. Given that price is arguably the most important variable in a transaction, and that the working capital adjustment can impact price, it follows that the working capital adjustment deserves special attention.

This video demonstrates how critical this calculation with a narrative that follows the founding and sale of a business. It is part of the Private Equity Training course titled "Closing Deals" (https://www.asimplemodel.com/model/17/closing-deals).

Private Equity Training:
https://www.asimplemodel.com/PrivateEquityTraining

Stock Purchase Agreement:
https://www.youtube.com/watch?v=sIA6EnxOo9A&t

Purchase Price:
https://www.youtube.com/watch?v=tmBvWZZPWUw&t

Cash Free Debt Free:
https://www.youtube.com/watch?v=qItNZozaKIU&t

Видео The Working Capital Adjustment | Introduction канала A Simple Model