Understand the Net Working Capital Peg in M&A Deals in 2026: How the Peg Is Calculated and Trued-Up
Understanding the net working capital peg in M&A deals in 2026 is the difference between clean close and a 5-15% purchase price haircut. The peg (target working capital delivered at close) is calculated using TTM, 3-month rolling, or same-month-prior-year methodology. Post-close true-up mechanics compare actual delivered vs peg and settle in cash. Common seller traps: […]