Is a purchase price adjustment common?
Frequency/market practice: Purchase price adjustments are common.
What type of purchase price adjustment is common (e.g., debt-free, cash-free)?
Frequency/market practice: Cash-free debt-free or net asset value adjustments are common. An expert is often appointed where there is disagreement between the parties.
Who usually prepares the closing balance sheet (where applicable)?
Frequency/market practice: This is often prepared by the seller or the target company, and responsibility is to be agreed by both seller and buyer.
Is the balance sheet audited (where applicable)?
Frequency/market practice: Rarely, although there is an increasing demand for auditing of the balance sheet in specific cases (i.e., locked-box mechanisms relying on locked-box accounts).