Close · Home Services

Working Capital Adjustments Counsel for Home Services Acquisitions

Independent sponsor counsel for home services, focused on Working Capital Adjustments and the deal mechanics that protect sponsor economics and LP alignment.

EV range $8M to $80M EV EBITDA $2M to $15M Audience Buy-side / Sponsor
The deal context

The economics on a home services platform deal usually hinge on a handful of structural decisions. Working Capital Adjustments is one of them.

The typical home services platform sits at $8M to $80M EV with EBITDA in the $2M to $15M range. The thesis runs on regional roll-ups of HVAC, plumbing, and electrical operators. The cleanest home services deals close in 60 days from LOI. The mess is almost always in the licenses, not the financials.

The moves

How Working Capital Adjustments actually gets structured.

  1. Set the peg based on a trailing 12-month average, normalized for seasonality.

  2. Define each line item in the schedule, especially deferred revenue and accrued vacation.

  3. Cap the dispute resolution timeline at 30 days post-close.

  4. Build a true-up payment mechanism funded out of escrow.

  5. In home services, layer in working capital peg that survives a slow February as part of the Working Capital Adjustments workstream.

The common mistake

Using an unadjusted average that ignores seasonality. You pay twice for the same cash.

Jason's take
"Working capital is where deals are won or re-traded after LOI. Read every line of the schedule."
Jason Powell · Working Capital Adjustments
Capital after close

The deal is one thing. The capital that opens up after close is another.

After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a home services target, and a Working Capital Adjustments question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.