Transaction Price Adjustment Mechanism

Purchase Price Adjustment Mechanism - A Purchase Price Adjustment Mechanism is a contractual provision in M&A transactions that allows for changes to the initial purchase price based on the target company's financial performance or position as of the closing date. It ensures that the final price reflects the actual value of the target, protecting the interests of both buyer and seller.

Class Information

Identification

Label (rdfs)
Purchase Price Adjustment Mechanism
Preferred Label
Transaction Price Adjustment Mechanism
Alternative Labels
Price Adjustment Clause
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Definition and Examples

Definition
A Purchase Price Adjustment Mechanism is a contractual provision in M&A transactions that allows for changes to the initial purchase price based on the target company's financial performance or position as of the closing date. It ensures that the final price reflects the actual value of the target, protecting the interests of both buyer and seller.
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Additional Information

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Deprecated
False

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