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In the context of a private equity acquisition of Century Solutions, a software services company, the purchase agreement specifies a net working capital ( NWC
In the context of a private equity acquisition of Century Solutions, a software services company, the purchase agreement specifies a net working capital NWC target based on the companys historical operational liquidity. At the close of the transaction, the actual NWC is found to be substantially higher than the target. Which of the following actions is most likely to occur based on the relationship between the actual NWC at close and the established NWC target in the purchase agreement?
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