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Category: Separate Escrows for Purchase Price Adjustments

Trends in M&A Transactions: Separate Escrows for Purchase Price Adjustments

by Daniel R. Avery on July 26, 2018

In mergers and acquisitions (“M&A”) transactions, the definitive purchase agreement (whether asset purchase agreement, stock purchase agreement, or merger agreement) typically contains provisions for post-closing purchase price adjustments . [2] Generally, these adjustments are intended to reconcile changes in the target’s financial condition as of the transaction’s closing (usually...

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