# Working capital peg

The [working capital](https://searchspheresource.com/glossary/working-capital) the business must be delivered with at closing.

A missing or sloppy peg is how a buyer discovers on day one that they bought a company with no cash to run it, then funds the gap out of pocket. Set it to a real normal, usually a trailing average rather than the closing-day snapshot a seller would prefer, because the level you agree is what the price gets trued up against.

In numbers: If the business needs $250k of working capital to run and the closing [balance sheet](https://searchspheresource.com/glossary/balance-sheet) delivers $200k, a peg adjusts the price down $50k; without one, the buyer funds that gap the day after closing.

Source: https://searchspheresource.com/glossary/working-capital-peg
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt