Operating working capital

Operating working capital (besoin en fonds de roulement d'exploitation — BFR d'exploitation) represents the funding required by the operating cycle: trade receivables plus inventories minus trade payables and other operating liabilities directly linked to revenues. It is the component of total working capital most relevant for normalisation in completion accounts price adjustments, as it reflects the true operational funding need of the business. Non-operating items (exceptional tax receivables, shareholder balances) are excluded to isolate the structural operating requirement.

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Example: a Swiss distribution company presents gross working capital of CHF 4.8 million. After segregating CHF 420,000 of non-operating items (lease deposit + VAT receivable), operating working capital is CHF 4.38 million — representing 53 days of revenue, consistent with sector norms (45–60 days). This normalised figure serves as the reference in the completion accounts mechanism, with any deviation at closing triggering a euro-for-euro price adjustment.

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Hectelion precisely defines and normalises operating working capital in every completion accounts analysis, building a defensible reference that withstands counterparty challenge.