Completion Accounts are financial statements prepared as of the closing date of an M&A transaction to determine the final purchase price. They include adjustments for working capital, cash, debt, and other relevant items, ensuring the buyer pays a price reflecting the target's actual financial position at closing.
A target company’s Completion Accounts show a higher debt level at closing, resulting in a purchase price reduction.
The Completion Accounts include adjustments for previously undisclosed liabilities discovered during due diligence.