U.S. corporate acquisitions: purchase price

Most purchase prices are agreed by negotiation and are paid for periods ranging from 2 to 6 years to allow for transition discovery of errors or omissions in the last financial statements. Most contracts provide mechanisms for the determination and settlement of errors and omissions; typically, small items are ignored and there is a time period after which no adjustment may be claimed.

DISCLAIMER

The information provided here and on the other pages linked hereto is intended for educational purposes only, and is not legal advice. Particular situations require particular analyses that can only be provided by legal and/or accounting professionals who specialize in the relevant fields and who know all the details of a situation. Also, a presentation such as this does not establish the attorney and/or CPA-client relationship that is necessary in any rendering of legal or other professional advice. Finally, one should be aware that the law is a chameleon-like beast that changes its colors frequently, and what holds good today may be reversed by tomorrow. The comments herein should then be read in that light.

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Fixing the purchase price and methods of payment