Negotiating Working Capital: Maximizing M&A Valuation

In most M&A transactions, the parties arrive at a purchase price by multiplying the target company’s revenue or earnings before interest, taxes, depreciation, and amortization (EBITDA) by an agreed-upon multiple. While this is generally true, a buyer will also typically require a minimum amount of “working capital” on the balance sheet when the deal closes to ensure there are no immediate liquidity issues. A buyer doesn’t want to pay twice: Once to buy the business and then to have to inject capital post-closing in order to keep the business running.

    The working capital issue is highly complex and can be one of the most contentious issues in M&A negotiations. 

    During the webinar Ben explores:

      • How working-capital hurdles provide protection and benefits to both parties in a transaction
      • How working-capital hurdles are calculated
      • How purchase price adjustments are made based on agreed-upon working capital hurdles

      WATCH THE
      WEBINAR

      ABOUT SHAREVAULT

      ShareVault’s secure document sharing solution gives organizations of all sizes in all industries the confidence to simply and securely share sensitive documents with third parties during due diligence, fundraising, board communications, and any circumstance when it is crucial that confidential information is maintained under the highest level of security and control.

      Compared to consumer-grade solutions, ShareVault virtual data rooms offer many features that give you control and document intelligence with the highest level of document-protection and monitoring available. Learn more.

                                                                                       WEBINAR PRESENTER:

      Company team

      Ben Boissevain 

      Managing Director, Ascento Capital, LLC   

      Ben Boissevain has 30 years of cross border M&A experience and has senior level global connections in the technology sector. He graduated from NYU Law School and started his career at White & Case. His legal training enables him to handle any aspect of contractual negotiations in M&A and capital raising. He garnered investment banking experience at Erste Bank in Vienna and Barclays Bank in New York.

      Mr. Boissevain regularly speaks on panels on the technology sector and corporate finance and has appeared on TV at Fox News and Bloomberg.