Target Working Capital Amount definition
Examples of Target Working Capital Amount in a sentence
The aggregate amount determined pursuant to the first sentence of this Section 2.2 is referred to as the “Closing Purchase Price.” “Closing Working Capital Adjustment Amount” shall mean an amount, which may be positive or negative, that shall be equal to (i) the amount of Working Capital set forth in the Estimated Closing Statement, minus (ii) the Target Working Capital Amount.
For the avoidance of doubt, the exclusion or inclusion of an item in the calculation of the Target Working Capital Amount shall have no bearing on whether such item shall also be excluded or included in the determination of the Final Working Capital Amount.
The Initial Payment shall be reduced, on a dollar for dollar basis, by the amount (if any) equal to the extent that the Pre-Closing Working Capital Amount, if it is a negative amount, is a higher negative amount than the Target Working Capital Amount (the Pre-Closing Working Capital Adjustment).
The “Working Capital Adjustment Amount” shall be the difference between the Closing Date Working Capital Amount and the Target Working Capital Amount, each of which shall be calculated on a consistent basis.
If the Estimated Closing Working Capital Amount is greater than the Target Working Capital Amount, then the Adjusted Transaction Value will be increased by the amount by which the Estimated Closing Working Capital Amount is greater than the Target Working Capital Amount.