We're looking at a job shop who collects a customer deposit for projects. Customer deposits make up a significant portion of current liabilities in the company. Since we're looking at an asset sale, the transaction will be entirely cash free. After close, the owners will take the cash from the customer deposits and then we're going to be responsible for completing the job without the benefit of the upfront cash. How have you seen other buyers/sellers negotiate this? Is it typically included/excluded from the net working capital peg?
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