Skip to Content
Business people looking over paperwork at a conference table.
Article

Transition strategy: Avoid these ten mistakes when calculating working capital

April 6, 2017 / 1 min read

When time is ticking, urgency can cause businesses to make serious errors while calculating working capital. To ensure your transactions run smoothly and succinctly, watch out for these 10 common mistakes. Read more at Axial Forum.

With so many complex elements to transactions, one would think that calculating net working capital is a relatively simple exercise — current assets less current liabilities. More frequently than expected or liked, this simple exercise turns into a very complicated calculation. At a time when both buyers and sellers just want to move on, they instead face potential arbitration or litigation post-close that could have been avoided overall.

Read More

Related Thinking

Two medical professionals review information on a tablet.
April 23, 2025

The Corner Series podcast: How Matt Stekier drives value creation in private equity healthcare investments

Podcast 25 min listen
State and local tax professionals crossing the street.
April 21, 2025

Navigating state and local tax nexus issues during M&A due diligence

Article 4 min read
Young couple learning about state and local tax from accountant.
March 19, 2025

Create value across your portfolio with the power of total rewards

Article 5 min read