Working-capital true-up analyst must resolve whether a top customer

SITUATION Earnings and Revenue Quality work in a public acquirer facing HSR and sector regulators now turns on a top customer is actually sticky because a CIM that omitted a material litigation put related-party revenue that disappears at close in play. Working-capital true-up analyst should say what related-party revenue that disappears at close proves.

DECISION Working-capital true-up analyst in a public acquirer facing HSR and sector regulators must choose Proceed / Reprice / Walk / Hold using related-party revenue that disappears at close after a CIM that omitted a material litigation.

HYPOTHESES TO TEST 1. Authorize Proceed now; related-party revenue that disappears at close already has the discriminator after a CIM that omitted a material litigation. 2. Keep Reprice in force until related-party revenue that disappears at close is completed after a CIM that omitted a material litigation for working-capital true-up analyst. 3. Treat related-party revenue that disappears at close as Walk because both readings appear after a CIM that omitted a material litigation. 4. Refuse a M&A Due Diligence close: working-capital true-up analyst does not have the decision a top customer is actually sticky turns on in related-party revenue that disappears at close.

ANALYSIS REQUIRED 1. Name the document working-capital true-up analyst still needs before signing. 2. Test whether a CIM that omitted a material litigation is a diligence gap, a price chip, or a walk-away. 3. Separate a one-off add-back from a recurring earnings issue in related-party revenue that disappears at close. 4. For this M&A Due Diligence Earnings and Revenue Quality file, read related-party revenue that disappears at close against a CIM that omitted a material litigation and write the one fact that would move a top customer is actually sticky for working-capital true-up analyst.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Earnings and Revenue Quality packet (related-party revenue that disappears at close after a CIM that omitted a material litigation). The follow-on Earnings and Revenue Quality action is what working-capital true-up analyst does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on a top customer is actually sticky, then the evidence in related-party revenue that disappears at close, then the action for working-capital true-up analyst - Hypothesis scorecard against related-party revenue that disappears at close: supported / rejected / untestable - Named option among Proceed, Reprice, Walk and the fact that kills the others - Owner and next date for working-capital true-up analyst in a public acquirer facing HSR and sector regulators