Working Capital Peg

This problem tests your understanding of how working capital affects deal economics and post closing operations. In an M&A interview, candidates are often expected to explain why buyers care about the level of net working capital that remains in the business at closing, how that level is determined, and how it helps ensure the acquired company can keep running normally without an immediate cash injection. Interviewers ask this because working capital is a core part of purchase price mechanics and a practical issue in structuring clean transactions.