Success story

Valuation of purchase price adjustments after the closing of the financial statements, to determine the final purchase price of the Company

Context:

The purchasing entity made a series of adjustments to the Company’s purchase price, based on the information obtained at the time of the transaction. Subsequently, once the financial statements were closed, the final purchase price of the Company was determined, and there were differences in both the adjustments and the values assigned by the sellers and purchasers to some items.

How we helped:

All the information provided to the purchasing entity was reviewed in order to understand the proposed adjustments and how to value them.
We identified those items that, either because of the way the buyer calculated the adjustment or because of the concept, did not make sense to apply or did not fit the Company’s reality.
The changes to be made to the proposed adjustments were documented, both with correct historical data and with the closing data of the transaction.
The adjustments made by the buyer were modified.

Result:

Inconsistencies in the adjustments were identified and documented.
The adjustments to be applied were negotiated and modified.
The Company’s final agreed price was tripled.

Back to services