Assess whether a top customer is actually sticky after a Phase II that found

Situation

Related-party revenue that disappears at close arrived with a Phase II that found groundwater impact for working-capital true-up analyst. That is a M&A Due Diligence People and Contracts decision on a top customer is actually sticky in a family-office reviewing a manufacturing target.

Decision

Working-capital true-up analyst in a family-office reviewing a manufacturing target must choose Proceed / Reprice / Walk / Hold using related-party revenue that disappears at close after a Phase II that found groundwater impact.

Hypotheses to test

• Working-capital true-up analyst can defend Proceed from related-party revenue that disappears at close after a Phase II that found groundwater impact in a M&A Due Diligence challenge.
• Working-capital true-up analyst cannot defend Proceed from related-party revenue that disappears at close; Reprice is what the extract actually supports after a Phase II that found groundwater impact.
• A Phase II that found groundwater impact never reached the population in related-party revenue that disappears at close — reopen intake, do not close a top customer is actually sticky.
• Two facts in related-party revenue that disappears at close after a Phase II that found groundwater impact conflict for working-capital true-up analyst; hold this People and Contracts file.

Analysis required

• Tie quality-of-earnings, working-capital, and contingent items in related-party revenue that disappears at close to a top customer is actually sticky.
• Name the document working-capital true-up analyst still needs before signing.
• Test whether a Phase II that found groundwater impact is a diligence gap, a price chip, or a walk-away.
• For this M&A Due Diligence People and Contracts file, read related-party revenue that disappears at close against a Phase II that found groundwater impact 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 / People and Contracts packet (related-party revenue that disappears at close after a Phase II that found groundwater impact). 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.