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Buying, Selling and Fairness in Determining Working Capital

Buying, Selling and Fairness in Determining Working Capital

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October 2019

Agreeing upon a figure for working capital is one of the trickiest parts of negotiating in certain business transactions. Not only are the numbers constantly changing, this figure can – and often is – the subject of many post-transaction disputes and litigation. It can be challenging to clearly define – and agree upon – all the specific working capital components that could impact the economics of a transaction.

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