Completion accounts

Completion accounts are a post-closing price adjustment mechanism in which the target company's financial statements are prepared as of the actual closing date to calculate the adjustment between the provisional signed price and the final price paid. This mechanism applies when prices are set on estimated working capital or balance sheet figures — as opposed to the locked-box mechanism. It frequently generates post-closing disputes on accounting methods, inclusions and permitted adjustments.

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Example: an acquisition is signed at a provisional price based on estimated working capital of CHF 3.0 million and net cash of CHF 500,000. Completion accounts show actual working capital of CHF 2.6 million (-CHF 400,000) and cash of CHF 650,000 (+CHF 150,000). The net adjustment is -CHF 250,000 in favour of the buyer, reducing the final price from CHF 16.0 million to CHF 15.75 million.

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Hectelion prepares and challenges completion accounts for sellers and buyers, applying rigorous accounting analysis to defend or contest adjustments.