Deal Structuring

Working Capital Peg

A pre-agreed target working capital level built into the price, with a rupee-for-rupee adjustment if actual closing working capital falls short of or exceeds it.

Seller Example

Promoter of a Pune fasteners manufacturer negotiates the peg upward to ₹6.5 Cr to reflect normal seasonal Q4 inventory build, preventing the buyer from penalizing routine seasonal stock levels and locking in the full headline price at closing.

Related terms in Deal Structuring & Commercial Terms