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Library of Congress Cataloging-in-Publication Data:
Names: Biemans, A. Vincent, 1977- author. | Hansen, Gerald M., 1967- author.
Title: M & A disputes: a professional guide to accounting arbitrations / A. Vincent Biemans, Gerald M. Hansen.
Other titles: Mergers and acquisitions disputes
Description: Hoboken, New Jersey: John Wiley & Sons, 2017. | Series: Wiley finance series | Includes index. |
Identifiers: LCCN 2017009404 (print) | LCCN 2017014047 (ebook) | ISBN 9781119331933 (pdf) | ISBN 9781119331940 (epub) | ISBN 9781119331919 (cloth)
Subjects: LCSH: Consolidation and merger of corporations – Accounting. | Arbitration (Administrative law)
Classification: LCC HG4028.M4 (ebook) | LCC HG4028.M4 .B54 2017 (print) | DDC 657/.96 – dc23
LC record available at https://lccn.loc.gov/2017009404
Cover Design: Wiley
Cover Images: © maxuser/Shutterstock
Why This Book
M&A transactions continue to be an important part of the corporate and investment landscape. Many of the purchase agreements governing those transactions contain post‐closing purchase price adjustment mechanisms. As a result, after‐the‐fact adjustments to the purchase price are commonplace.
In many instances, those adjustments remain limited to a series of uncontroversial accounting true‐ups. Purchase price adjustment mechanisms can, however, have a significant impact on the deal value to one or both parties. Sellers and buyers can be easily caught off guard by a sizeable proposed adjustment, problems with the company's accounting, or some perceived unreasonable position by the counterparty. In some instances, the impact on the ultimate purchase price paid by buyers and received by sellers can make or break transactions.
