Related Posts
Not gonna lie, I’ll probably try this.

Additional Posts in Transaction Services, M&A, Deal Advisory
how much harder is banking then valuation?
What is a look back analysis?
FDD during an economic downturn?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.



Mentor
It’s a closed loop between cash and NWC because you can’t increase inventory without spending cash (or building AP / accruals).
That said I’m not sure I fully track where the question is coming from, no seller would want to artificially increase the peg - that would mean either leaving behind that value either through maintaining unnecessarily elevated inventory through close or getting dinged via the nwc true up when closing inventory is lower than the amount in the peg. If sellers are going to try to manipulate nwc it will be to artificially lower the peg
No seller, or competent investment banker, pushes for an artificially high NWC