Working-Capital Peg Estimator
The Trailing-Twelve-Month Average
The peg: what a normal month holds, from the QoE or the monthly balance sheets.
Expected at Close
What the seller will actually deliver on closing day.
The Peg
$200,000
Receivables plus inventory, minus payables, at the trailing average
Delivered at Close
$150,000
The same math on closing day's balances
True-Up
$50,000
In your favor: the price adjusts down
The seller delivers $50,000 less than normal: the price adjusts down by that much, or the gap gets funded another way.