What type of purchase price adjustment is common (e.g., debt-free, cash-free)?
Frequency/market practice: Very common; NAV is very common in asset deals. In share deals, debt-free, cash-free and working capital are very common.
Who usually prepares the closing balance sheet (where applicable)?
Frequency/market practice: The buyer usually has the responsibility of ensuring the target company prepares this.
Is an earn-out common?
Frequency/market practice: Earn-outs are fairly common in private equity transactions when the seller keeps managing the target company after closing. They are rare where the seller is completely exiting, though market practice has begun to see a few cases of earn-out in such scenarios.