Unlocking Pandora’s box – pricing mechanisms on company purchases in the UK
Title: Unlocking Pandora’s box – pricing mechanisms on company purchases in the UK
Jurisdiction: United Kingdom
Author: Alice Gardner
Law firm: TLT LLP
Completion accounts have traditionally been favoured as the mechanism under which a buyer and seller adjust the purchase price for a UK target company. However, what is known as a “locked box” pricing mechanism has become increasingly popular over recent years and it is important for the parties to understand how each mechanism works and who it most benefits.