Examples of Target Net Working Capital Amount in a sentence
The Purchase Agreement defined the Target Net Working Capital Amount as $1.174 billion.
But the calculation wasreciprocal, so if the Company had more cash on its books than the Target Net Working Capital Amount, then the Buyer would pay the difference to the Seller.The Purchase Agreement implemented the resolution of the parties’ disputes through a broad mutual release, which extends to “any and all rights, defenses, claims or causes of action .
This figure was dramatically less than the Target Net Working Capital Amount and suggested a payment from the Seller to the Buyer of approximately $2.15 billion.The wide gap stemmed from four changes that the Buyer made to the Seller’s Closing Payment Statement.
The Seller’s estimate exceeded the Target Net Working Capital Amount and suggested a payment from the Buyer to the Seller of approximately $428 million.After closing, the Buyer was obligated to provide the Seller with a “Closing Statement” setting forth the Buyer’s “good faith calculations” of the “Closing Date Purchase Price.” PA § 1.4(b).
Assuming the other elements of the formula remained constant, this meant that if the Net Working Capital Amount was less than the Target Net Working Capital Amount, the Seller had to pay the Buyer the difference.