What You’re Really Paying: Net Working Capital & Net Debt Explained

Max Lummis and the team at forensic accounting firm LCS return for a live session devoted to answering your questions on all things due diligence.

LCS does the quality of earnings for dozens of search acquisitions every year.

This month’s session is all about the notoriously tricky net working capital (NWC) and net debt.

Topics included:

• Understand where purchase price really moves — and why Net Working Capital and Net Debt are often where buyers unintentionally overpay.
• Learn how sellers and bankers think about NWC targets, including what’s “market,” what’s aggressive, and what deserves pushback.
• Examples of common mistakes first-time buyers make in LOIs and closing mechanics — and how to avoid them.
• Clarify what should (and should not) be treated as debt, especially around leases, bonuses, deferred revenue, and tax items.
• Walk away with a practical framework you can use in diligence, negotiations, and closing — even if you’re not a finance professional.