Towards completion
Completion & Working Capital Analysis
The numbers that determine what reaches the bank at completion. The working-capital peg, the equity bridge and the adjustments that move value between signing and completion.
When advisers typically need this
- A completion mechanism has been agreed and the peg needs to be set on a defensible basis.
- The buyer's completion working capital figure is disputed or unclear.
- Debt-like items are being identified and the client needs to understand the cash effect.
- The equity bridge needs preparing ahead of completion.
What we review and analyse
- Normalised working capital, using historic monthly data
- The proposed peg and the basis on which it was set
- Completion working capital, and any surplus or deficit against the peg
- Cash, financial debt, HP and finance arrangements
- Director loan accounts
- Debt-like and cash-like items
- Completion adjustment mechanisms, including caps and de minimis thresholds
- The equity bridge to estimated completion proceeds
Typical output
- A normalised working-capital analysis with a supported peg position
- An equity bridge from enterprise value to estimated completion proceeds
- A schedule of debt-like and cash-like items to support the completion statement
- Commentary on where the completion numbers may be disputed, and how to prepare for it
How it works
Scope, deliverables, information required and fee are agreed before work begins. Findings are returned to you, and to the client only where agreed.
See how we work- 01
The scope is agreed and confirmed in writing
- 02
Information is supplied securely by the adviser or client
- 03
The analysis is completed and reviewed
- 04
Findings are returned as agreed
Limitations
This is financial analysis supporting the transaction. It is not a formal legal completion statement and does not replace the completion accounts process, unless an engagement expressly provides for it. This service is provided under a separately agreed engagement and does not constitute legal, tax, audit or regulated investment advice. Any analysis depends on the information supplied, the assumptions adopted and the circumstances at the relevant time.
Next step
Discuss a client matter
If completion & working capital analysis may be relevant to a client matter, describe it briefly. We will confirm whether it falls within our capability and what support may be appropriate.