A seller who wants a fast, predictable closing prefers a locked box; a buyer who wants the current financial reality prefers completion accounts. The choice is determined by data quality and bargaining power.
The trade-off is where economic risk sits. A locked box fixes the price on the locked-box date, so the buyer carries the business from then on — which makes a tight “leakage” definition and recent, reliable accounts essential. Completion accounts keep the true-up but invite a post-closing measurement dispute. Data quality usually decides which is safer.
Shall we apply this matter to your situation?
Tell us your specific situation in a few sentences; we'll assess it with the right team.
This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.
Categories