# Purchase Price Adjustment Mechanism

**IRI:** https://folio.openlegalstandard.org/RBUtAfKXfMN4dku9MsqeFjW

## Labels

**Preferred Label:** Transaction Price Adjustment Mechanism

**Alternative Labels:**

- Price Adjustment Clause

## 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.

## Sub Class Of

- https://folio.openlegalstandard.org/R8S6XHMUuU5cg5gdDri7LuL

## Parent Class Of

- https://folio.openlegalstandard.org/RCAoasVOAmxHyW8UMRG5Btr
- https://folio.openlegalstandard.org/RCJ5C096Y1Os0YHlEC3q4Dx

**Deprecated:** False