What type of purchase price adjustment is common (e.g., debt-free, cash-free)?
Frequency/market practice: Cash free/debt free and working capital adjustment are very common. NAV adjustment is rarely seen.
Who usually prepares the closing balance sheet (where applicable)?
Frequency/market practice: This is usually the buyer/target company.
Is the balance sheet audited (where applicable)?
Frequency/market practice: Rarely; frequently reviewed by an audit firm (i.e., accountants), but only occasionally audited.
Is an earn-out common?
Frequency/market practice: Earn-outs are fairly common in private equity transactions, but less common in other transactions.