Show Me the Money! Purchase Price Adjustments in M&A

Valuation of a target must account for many factors, and transaction parties want to ensure the price accurately reflects the true value of the business. A purchase price adjustment provision is a mechanism by which the purchase price may be increased or decreased as a result of changes to the target company’s financial condition or other specific factors between signing and closing. The adjustment operates to better reflect the often-changing value of the business in the interim period. Explore common purchase price adjustment mechanisms in this comprehensive practice note.

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Related Content

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