What type of purchase price adjustment is common (e.g., debt-free, cash-free)?
Frequency/market practice: Cash-free/debt-free with a normal level of working capital (purchase price based on earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple (or other multiplier)) is fairly common, as well as locked box structures. NAV is rarely seen, though this type of adjustment may be particularly relevant in certain cases (e.g., in businesses where there is regular movement in fixed assets).
Who usually prepares the closing balance sheet (where applicable)?
Frequency/market practice: This is usually prepared by the buyer, although, depending on the particular circumstances of each case, it is not uncommon for the seller to prepare the closing balance sheet.
Is the balance sheet audited (where applicable)?
Frequency/market practice: Not necessarily, although common in medium-sized and large deals.