In particular, the seller could manipulate assets and liabilities by presenting one or more of the following conditions: Target Working Capital The buyer in each M&A transaction wants to have sufficient operational liquidity and will negotiate a “target” with the seller. This figure is the amount that the buyer wants to have at the closing table in order to continue its activities and generate revenue. It can be helpful for buyers to find an accurate target working capital by looking at the average net working capital from the same point over the past 6 to 12 months. The following business characteristics affect the normal amount of working capital: Working capital is an essential part of the operation of a business, a barometer of the health of the company and is often an essential factor in determining the value of the company. However, the traditional definition of working capital (current assets – current liabilities = working capital) is changed in most transactions. Negotiating all the details of the definition and adjustment of working capital is complex and often leads to difficult negotiations and complicates the closing process. .