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Working Capital Adjustment M&A Checklist and Guidelines

Casey McTigue

Managing Director, Professional Services Group

Working capital purchase price adjustments are a part of most M&A merger agreements. M&A deal parties, as well as their accounting and legal advisors, can use this working capital adjustment checklist in anticipation of their next M&A deal closing.

Topics covered include:

  • Pre-Closing Negotiation of the Net Working Capital Target
    Definition of net working capital and key aspects that can impact that definition.
  • Estimated Closing Statement Preparation and Delivery
    Tips on identifying accounting and legal resources, recommended pre-closing activities of the seller’s accounting team, and suggested information to make available to seller counsel and the shareholder representative.
  • Considerations for Merger Agreement Provisions
    Tips from the experienced team at SRS Acquiom to ensure that working capital adjustments are managed smoothly in the negotiation process.

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Casey is the managing director of SRS Acquiom’s professional services team and shareholder representation business.  He also oversees thought leadership for the company, including development of SRS Acquiom’s industry-leading annual Deal Terms Study and the Claims, Life Sciences, and PPA Studies. 

Before joining SRS Acquiom, Casey was a litigation & trial attorney at a San Francisco law firm. Casey represented Fortune 50 clients as well as SRS Acquiom and its clients, and took multiple cases to trial and appeal. 

Casey received his B.S. from Arizona State University’s W. P. Carey School of Business, and his law degree from University of California, Berkeley. He is a licensed attorney in California.

 

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