easy · Private Equity & LBOs
What is the result for the Buyer if the Actual Working Capital is significantly higher than the Peg?
- The Buyer's expected internal rate of return (IRR) automatically increases.
- The Buyer receives a cash refund from the Seller.
- The Buyer must pay more cash to the Seller at closing.
- The Buyer must reduce the amount of debt used to finance the transaction.
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