What are common pre-closing price adjustment provisions?
Depending on the length of time between the execution of the purchase agreement and the closing date, and also depending on whether the seller or the buyer has a volatile stock price or is in a unpredictable business, the purchase agreement may contain some form of pre-closing price adjustment. Common types of pre-closing price adjustments are based upon the stock market performance of the parties, the financial performance of the parties, and sometimes on matters outside the control of either party.
