Spot working‑capital creep in acquisitions
- A thread warned that acquisitions often hide working-capital drains like AR and inventory creep, which can consume cash as the acquired business scales. - The post urged custom metrics for earnings-to-working-capital conversion to preserve cash and reveal acquisition margin quality during integration and post-close periods effectively. - Controllers should track these bespoke metrics within 90 days post-close to avoid surprise WC consumption. (x.com)