FOLIO Ontology

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Identification

IRI:
https://folio.openlegalstandard.org/RCJ5C096Y1Os0YHlEC3q4Dx
Label Locked Box Pricing
Preferred Label N/A
Identifier N/A
Alternative Labels
Fixed Price Mechanism Locked Box Date Mechanism Pre-Determined Price Mechanism

Definition

Locked Box is a pricing mechanism in M&A transactions where the purchase price is based on the target company's financial statements at a specified historical date, known as the locked box date. From this date to the closing date, the seller is prohibited from extracting value from the company, ensuring price certainty and protecting the buyer against financial deterioration.

Examples

  • • The Locked Box Mechanism simplifies the transaction by eliminating the need for post-closing adjustments.

Class Relationships

Sub Class Of

Is Defined By

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See Also

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Parent Class Of 0

  • • None

Class Hierarchy Visualization

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Additional Information

Metadata

Comment

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Description

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Notes

  • • None

Editorial Information

History Note

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Editorial Note

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Deprecated

No

Source and Origin

No source or origin information available