Tag archives: post-closing adjustments

Post-Closing Adjustments

By Eric Vice on November 11, 2020 Posted in M&A

Previously, we wrote about the use of earn-outs as a means by which buyers mitigate the risk of a target’s post-closing under-performance by holding back part of the purchase price and paying it out as the target meets certain financial targets. In this post, we examine a related topic that is often confused with earn-outs … Continue reading

Locking the box: an emerging tool to avoid post-closing negotiations

By Alexander Schmitt (Toronto) on January 29, 2015 Posted in Corporate finance

In Canada, private M&A transactions have long followed a familiar structure: the parties settle on a “cash free, debt free” price, which then must be adjusted post-closing to account for the target’s actual cash, debt and working capital (or other measures such as net assets) in an effort to reach the true “equity value” of … Continue reading