Completion Accounts Mechanism

Mecha­nisms for purchase price adjus­t­ments. They protect the buyer against nega­tive deve­lo­p­ments in the value of the target company prior to closing. On the other hand, they reward the seller for good corpo­rate gover­nance and gene­ra­ted cash flows between the closing date and the closing. In prac­tice, there are a variety of price adjus­t­ment mechanisms.