Due diligence, tax structuring done … what next?

Published Date: 1 Jul 2023


This article explores the basics of the enterprise to equity value bridge, and how this is typically used to structure an offer to purchase the equity of a company. It will then consider how the findings identified during the due diligence process are used to shape equity value, and how these adjustments are used to balance the interests of the vendor and purchaser, with a particular focus on the adjustments required at completion of a transaction. It provides an overview of the two mechanisms available to balance these interests, being the traditional completion accounts mechanism and the locked box approach. It will also consider the typical provisions that are included in a sale and purchase agreement in relation to financial accounting and tax issues.

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