Case Study
$43.2M Working Capital Dispute
- Matthew Edwards
Technology
INDUSTRY
800
EMPLOYEES
$300M
ANNUAL REVENUE
Background
Working capital conveyed to our client in an acquisition was approximately $70M under the purchase agreement’s working capital threshold.
Objective
- Inform the value of conveyed working capital in a carve-out acquisition.
- Accumulate supporting documentation for potential litigation.
- Prepare defensible position of subjective working capital values, including accruals, reserves and estimates.
Solution
- Accumulated opening balance sheet working capital balances on an asset-by-asset basis.
- Established process to track the consumption & forecasted consumption of conveyed inventories.
- Responded to mediator’s requests in settlement discussions.
Recovered $43.2 Million in cash proceeds.
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Knowledge Hub
TSA Separation of Carve-Out Purchase
EBITDA Scrub + Addback Restatement
Annual Budget Implementation
$43.2M Working Capital Dispute
Value Enhancement Program Management
