Deal Structure

Purchase Price Adjustment

A change to the final price based on items like working capital, debt, or cash at closing. Why it matters: These adjustments can materially change proceeds after the headline price is agreed, especially around working capital, debt, cash, and transaction expenses.

Related terms

Working Capital

The short-term money needed to run the business, usually current assets minus current liabilities. Why it matters: Buyers expect enough working capital to be left in the business at closing so operations can continue normally without an immediate cash shortfall.

Closing

The moment when the sale officially happens and ownership transfers. Why it matters: This term affects what must happen at closing, how money moves, and how final obligations are documented.

More from Deal Structure

Asset Sale Cash at Close Cash-Free Debt-Free Contingent Payment Debt-Like Items Earnout Escrow Holdback Majority Sale Membership Interest Sale Minority Rollover Minority Sale

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