Completion Accounts
type: Class
alternative label: Closing Accounts
alternative label: Final Settlement Accounts
alternative label: Post-Closing Accounts
alternative label: True-Up Accounts
subclass of: RBUtAfKXfMN4dku9MsqeFjW
definition: 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.
example: A target company’s Completion Accounts show a higher debt level at closing, resulting in a purchase price reduction.
example: The Completion Accounts include adjustments for previously undisclosed liabilities discovered during due diligence.