My colleague Ward Carter posted an interesting blog about working capital adjustments. Im living his scenario now on a deal negotiation, and encourage everyone to read it. Here is an analogy that I have used with clients in the past. Lets pretend that gasoline costs $100 per gallon, and you agree to sell your car with 5 gallons in the tank. If the tank has 25 gallons on the closing day, you will expect $2,000 in additional value. If you have 25 gallons today, but you will have to drive to San Francisco and back before the closing date, then you can predict approximately how much will be left, and therefore what the adjustment will be. Forecasting the balance sheet on the closing date, and applying the proposed balance sheet adjustment, will give you a good idea of where your final value will land. Nobody likes surprises.