Purchase price agreements – You don’t have to walk on eggshells
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Description
Abstract: Initial acquisition offers are rarely set in stone. In most cases, the two M&A parties must negotiate purchase-price adjustments (PPAs) — differences between the originally stated and the final price at closing. This article explains how PPAs work and the challenges involved. What happens when the sides can’t agree on a closing price? A sidebar suggests earnouts as a possible solution.
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