Bonitz Advisory was recently appointed to resolve a working capital dispute of material scale and was successful in negotiating an advantageous outcome for its client.
Almost all successful M&A transactions invariably include a negotiation of Working Capital levels of the entity or business being traded. The analysis, issues and negotiation surrounding Working Capital are often very complex and Bonitz Advisory prides itself to have developed a best-practice approach to ensuring fair and equitable Working Capital outcomes for our clients.
Working Capital is typically negotiated and agreed prior to the completion of a transaction but with variances to be settled a month or so *after* completion. If the agreed terms are not fair and comprehensive then a dispute can ensue which can be timely and costly to resolve.