Purchase price | Philippines | Global Private M&A Guide - Limited External Content | Baker McKenzie Resource Hub

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Is a purchase price adjustment common?

Frequency/market practice: Fairly common.

What type of purchase price adjustment is common (e.g., debt-free, cash-free)?

Frequency/market practice: Working capital and NAV are fairly common.

Is there a collar on the purchase price adjustment?

Frequency/market practice: Rarely.

Who usually prepares the closing balance sheet (where applicable)?

Frequency/market practice: The buyer usually bears the responsibility of ensuring the target company prepares this.

Is the balance sheet audited (where applicable)?

Frequency/market practice: Rarely.

Is an earn-out common?

Frequency/market practice: Rarely.

Is a deposit common?

Frequency/market practice: Rarely.

Is an escrow common?

Frequency/market practice: Rarely.

Is a break fee common?

Frequency/market practice: Rarely.