Assess whether working capital should be a walk-away after a customer who

SITUATION The working file is carve-out stranded-cost model after a customer who just sent a non-renewal. Working-capital true-up analyst in a family-office reviewing a manufacturing target has to name Proceed or Reprice for this M&A Due Diligence People and Contracts file.

DECISION Working-capital true-up analyst in a family-office reviewing a manufacturing target must choose Proceed / Reprice / Walk / Hold using carve-out stranded-cost model after a customer who just sent a non-renewal.

HYPOTHESES TO TEST 1. The population in carve-out stranded-cost model is the one a customer who just sent a non-renewal named, so Proceed follows for this People and Contracts file. 2. The population in carve-out stranded-cost model is adjacent only to a customer who just sent a non-renewal; Reprice is the honest M&A Due Diligence call. 3. A family-office reviewing a manufacturing target already contained a customer who just sent a non-renewal before carve-out stranded-cost model arrived; no new People and Contracts path. 4. Provenance on carve-out stranded-cost model after a customer who just sent a non-renewal is broken; do not pick Proceed or Reprice yet.

ANALYSIS REQUIRED 1. Map reps, earnout mechanics, and integration risk a family-office reviewing a manufacturing target would inherit. 2. Tie quality-of-earnings, working-capital, and contingent items in carve-out stranded-cost model to working capital should be. 3. Name the document working-capital true-up analyst still needs before signing. 4. For this M&A Due Diligence People and Contracts file, read carve-out stranded-cost model against a customer who just sent a non-renewal and write the one fact that would move working capital should be for working-capital true-up analyst.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (carve-out stranded-cost model after a customer who just sent a non-renewal). The follow-on People and Contracts 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 working capital should be, then the evidence in carve-out stranded-cost model, then the action for working-capital true-up analyst - Hypothesis scorecard against carve-out stranded-cost model: 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 family-office reviewing a manufacturing target