Common Contracts

1 similar Purchase Price Adjustment Agreement contracts

Purchase Price Adjustments…
Purchase Price Adjustment Agreement • November 7th, 2020

Share sale agreements invariably provide for an agreed price that presupposes a fixed working capital balance at settlement. That balance is often agreed to be zero which will require the purchaser itself to ensure funding of working capital is available immediately after settlement. In other cases it is agreed at the level that has customarily been required to fund working capital requirements. This ensures sufficient working capital to operate the business is already in place at completion.

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