| Commentary

130 Completion accounts

| Commentary

4: PRICE AND PAYMENT

130 Completion accounts

The buyer may be interested in the target company for its future profits and earnings capabilities, break-up value and/or its underlying assets. The buyer will want confirmation of the assets, working capital and liabilities of the target company as at completion, but these cannot be confirmed until after completion—hence the necessity of completion accounts1 as at the date of completion which will be prepared under the formula agreed by the parties and set out in a ‘completion schedule’ as part of the sale and purchase agreement. Having drawn up these draft completion accounts, the

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