Target Working Capital Clause Samples
The Target Working Capital clause defines the specific amount of working capital that a business should have at the time of closing a transaction, typically in mergers and acquisitions. This clause sets a benchmark by which the actual working capital at closing is compared, and any difference may result in a purchase price adjustment—if the actual working capital is above the target, the seller may receive more, and if below, the buyer may be compensated. Its core function is to ensure that the business is transferred with a normal and agreed-upon level of liquidity, preventing either party from being unfairly advantaged or disadvantaged due to fluctuations in working capital.
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Target Working Capital. 3 RCRA...............................................19
Target Working Capital. 2.5(a) Third Party Claim...................................................... 9.3(b) Title IV Plans......................................................... 4.15(a) Total Company Share Amount............................................. 2.1(c)(i) True-Up Amount......................................................... 2.5(d)(iii) True-Up Amounts........................................................ 2.5(d)(iv) Willis Lawsuit......................................................... 6.13 Wiregrass.............................................................. 4.7(a) Working Capital........................................................ 2.5(a) Working Capital Reserve................................................ 9.6(a) Working Capital Reserve Account........................................ 9.6(a) Working Capital True-Up Amount......................................... 9.6(a)
Target Working Capital. Each party hereto agrees that the Target Working Capital shall be $3,110,000. The Purchase Agreement is deemed amended for this purpose.
Target Working Capital. Section 12.1...........................................77
Target Working Capital. 13.15 Tax......................................................................13.15
Target Working Capital. Target Working Capital has the meaning as defined in Schedule 10 Definitions, by reference to this exhibit.
Target Working Capital. Section 1.1
Target Working Capital. 2.3(b) Tax and Taxes ...................................... 3.10(f) Tax Return ......................................... 3.10(f) Termination Date ................................... 10.1(d) Third Party Acquisition ............................ 7.10 Third-Party Claim .................................. 9.3(a)(ii) Transmittal Letter ................................. 2.5(d)(i) Section -------- Unresolved Items ................................... 2.4(d) WARN Act ........................................... 7.7(a) AGREEMENT AND PLAN OF MERGER This AGREEMENT AND PLAN OF MERGER (this "Agreement") is entered into this 23rd day of December 2004, by and among GALLARUS MEDIA HOLDINGS, INC., a Delaware corporation (the "Company"), GMH HOLDING COMPANY, a Delaware corporation ("Parent"), GMH ACQUISITION CORP., a Delaware corporation ("Merger Sub"), and ABRY Partners, LLC, a Delaware limited liability company, solely in its capacity as the Stockholder Representative hereunder and solely with respect to Sections 2.4, 2.5, 2.7, 7.1(b), 7.3(a), 7.12(a), 7.12(d), Article IX and Article XI of this Agreement.
Target Working Capital. “Target Working Capital” shall mean $100,000,000.
Target Working Capital. The Closing Amount will be adjusted by the difference between the Closing Date Working Capital and an amount (the “Target Working Capital”) equal to $273,238, less an amount equal to the lower of (i) the incremental income tax owed by Sellers as a direct result of the 388(h)