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Locked-Box Deals

Dorsey & Whitney LLP

The Locked Box - Unlocked

Dorsey & Whitney LLP on

By now, probably everyone that works in M&A or private equity has heard of the concept of a locked box as an alternative to completion accounts (or, in the U.S., “closing accounts”) on a deal....more

Cooley LLP

Locking the Box in Private M&A Transactions – Myths and Facts

Cooley LLP on

Purchase price adjustment mechanisms are common in private M&A transactions to determine the final price to be paid by the buyer. However, the manner in which the price adjustment is achieved varies by jurisdiction. In the...more

Morrison & Foerster LLP

MoFo 2020 Asia Buyouts Report: Update On Deal Terms – Part 1: Pricing The Deal

Morrison & Foerster LLP on

We looked at 28 deals across Asia signed or closed pre-COVID-19 in which the buyer or a group of affiliated buyers acquired all or a significant majority of the outstanding equity of the target. We examined the common key...more

Latham & Watkins LLP

Locked Box Lands in the US

Latham & Watkins LLP on

In the US, unlike in Europe, deals are traditionally transacted on the basis of closing accounts, with adjustments made post-closing for working capital, indebtedness, cash, and transaction expenses. This is now changing....more

Latham & Watkins LLP

M&A Deal Terms in 2017: What Can Deal Teams Expect?

Latham & Watkins LLP on

Britain’s decision to leave the European Union in June 2016, coupled with the election of Donald Trump as US president in November 2016, gave dealmakers plenty of pause for thought last year – but ultimately did little to...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Popularity of Locked-Box Deals in the UK: Price Certainty, Other Benefits for Buyers"

In the U.K. M&A market, the continuing trend in recent years has been an increase in the number of deals being completed on the basis of a locked-box pricing mechanism. In a locked-box transaction, as opposed to the...more

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