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welcome to another tutorial video this time weamp;#39;re going to go over a very specific topic which is the working capital adjustment in m a deals and leverage buyouts so a very common question we get goes something like this can you explain how the working capital adjustment in m a and lbo Deals Works how do you model it and how does it change the results also why do acquirers adjust the working capital of Target companies when they close deals so if you want everything here in writing and you want the screenshots in the Excel model go to this URL breaking into wallstreet.com KB slash leveraged buyouts and lbo models slash working capital adjustment also pin this in the comments is the first thing or just Google working capital adjustment piws and you should find it here is the very short answer to the question the working capital adjustment is most common in Acquisitions of private companies that are done on a cash-free debt-free basis and the idea is that it keeps the buyers effe