Kirkland M&A Update Kirkland & Ellis LLP

M&A Update: The Well-Adjusted Purchase Price Adjustment

In this issue of M&A Update, partners David Fox and Daniel Wolf and associate Joshua Zachariah discuss purchase price adjustments, and explain why, while their appeal is indisputable, they are often subject to post-closing disputes. One of the drivers of these disputes is inattention to the details of drafting the adjustment provisions, often exacerbated by the fact that these clauses straddle the realm controlled by the legal practitioners and that managed by the financial and accounting experts.