A practical guide to working capital pegs in M&A—what belongs in operating NWC, how to set a seasonally aware peg, and the purchase price adjustment mechanics at close. Learn where sellers lose value, which “debt-like” items to reclassify, and how QoE ties peg policy to normalized EBITDA.
Master the EV→Equity bridge: cash-free/debt-free conventions, debt-like items, and the working-capital peg that protects price and net proceeds at closing.
Comps, DCF, precedents: learn how buyers triangulate value, when each method dominates, and how to position your company for premium outcomes.
Normalize EBITDA and back it with QoE. Learn how earnings quality, add-backs, and working-capital trends protect price and structure in middle-market M&A.
A founder-focused guide to Quality of Earnings in M&A, including what QoE means, what a QoE report includes, common adjustments and red flags, buyer and lender underwriting, working capital, cash conversion, and seller preparation.
Most price “chips” happen between LOI and close—and working capital is the #1 culprit. Here’s how to set the peg, manage seasonality, and protect your purchase price.