E-commerce · Deal Structure
Working-capital peg
Published · Reviewed by The Diligence Standard Team · Updated
A peg should reflect normalized operating requirements and precise definitions, not a mechanically selected average.
Records to reconcile
- Monthly balance sheets
- Seasonality and growth
- Included account definitions
Warning signal
Inventory and processor balances are inconsistently classified or seasonality is ignored.
Transaction impact
The closing adjustment can transfer unexpected cash needs.
Response
Build the peg from operating reality and negotiate definitions explicitly.