Purchase-price mechanics
Debt-Like Items
Not every obligation that reduces delivered value is labeled debt on the balance sheet.
Buyer lens
Identify pre-close obligations that require post-close cash and prevent double counting against working capital.
Seller lens
Prepare a defensible closing schedule before accrued obligations become late-stage deductions.
Why it matters
- Bonuses, taxes, deposits and deferred revenue can behave economically like debt.
- Treatment depends on the purchase agreement and transaction definitions.
- Double counting can occur when the same item affects both working capital and debt-like adjustments.
Evidence to reconcile
- Accrued liabilities
- Taxes and bonuses
- Customer deposits/deferred revenue
- Equipment obligations
- Purchase-price definitions