Is a purchase price adjustment common?
Frequency/market practice: Fairly common; it is rare for a private acquisition to not include a purchase price adjustment.
What type of purchase price adjustment is common (e.g., debt-free, cash-free)?
Frequency/market practice: Cash free/debt free and working capital are the most common metrics on which purchase price adjustments are based. An adjustment based upon a target's net asset value is unusual.
Who usually prepares the closing balance sheet (where applicable)?
Frequency/market practice: The buyer usually prepares the closing balance sheet.
Is the balance sheet audited (where applicable)?
Frequency/market practice: Rarely; historical balance sheets for completed fiscal years are often audited. Interim balance sheets are typically unaudited.