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

Subject:

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.

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