{
  "title": "What is a working capital peg? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-a-working-capital-peg/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-23",
  "updated": "2026-10-23",
  "section": "Glossary",
  "keyword": "Working capital peg",
  "short_answer": "A working capital peg is the agreed normal level of net working capital that the seller must deliver at closing. If the business has less than the peg on the closing date, the price goes down by the shortfall; if it has more, the price goes up. The peg is usually the trailing twelve-month average.",
  "facts": {
    "Month 1": "$400,000",
    "Month 2": "$390,000",
    "Month 3": "$420,000",
    "Month 4": "$430,000",
    "Month 5": "$440,000",
    "Month 6": "$410,000",
    "Month 7": "$380,000",
    "Month 8": "$390,000",
    "Month 9": "$410,000",
    "Month 10": "$420,000",
    "Month 11": "$440,000",
    "Month 12": "$390,000",
    "Total of 12 months": "$4,920,000",
    "Peg (average)": "$410,000",
    "NWC delivered at closing": "$385,000",
    "True-up": "Price reduced by $25,000"
  },
  "sources": [
    "https://www.investopedia.com/terms/w/workingcapital.asp",
    "https://www.sba.gov/funding-programs/loans/7a-loans"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}