19 Apr 2022
Is the Price Right? Adjusting the Purchase Price Higher or Lower
Although the parties spend a considerable amount of time, money, and effort to place a dollar amount on the value of a business, things happen. 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 certain specified accounts between signing and closing. A purchase price adjustment better reflects the bargain struck by the parties at signing. Explore the various purchase price adjustment provisions negotiated in M&A transactions.
Related Content
- Purchase Price Provisions in Acquisition Agreements
Review drafting and negotiating considerations related to purchase price provisions.
- Working Capital Purchase Price Adjustment Clause (Long Form)
Start with this long form clause to tailor the adjustment of the purchase price based on a pegged working capital amount.
- Asset Purchase Transactions Training Presentation
Refresh your knowledge about asset purchase agreement provisions and access related content.
- Stock Purchase Transactions Training Presentation
Refer to this high-level overview of stock purchase transactions to view related content.
- Pricing Collars
Understand the use of pricing collars in public company acquisition agreements.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- The Practical Guidance Journal Spring 2022 Edition includes market trends on de-SPAC transactions.
- Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+