What to keep in mind
Define accounting methodology, reference date, sample calculations, dispute procedure, access to records and payment of adjustments.
An unclear adjustment formula can undermine certainty even when the base price is agreed.
Distinctions often confused
A closing accounts adjustment is different from an earn-out linked to future performance.
Frequently asked questions
Can the final price differ from the headline amount?
Yes, if the contractual adjustment terms so provide.
Who resolves a dispute over the final calculation?
The agreement may designate independent accountants or another appropriate mechanism.
Informational content. It is not a substitute for professional advice.