Dipl. Treuhandexperte TREX HFP Practice Questions - Diplomierte R Treuhandexpertin Treuhandexperte Mit Eidgenössischem Diplom (TREX) Exam

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In Swiss M&A negotiations, what is the 'Locked Box' pricing mechanism vs. 'Completion Accounts' (Closing Accounts) in a Share Purchase Agreement (SPA)?
Correct Answer:
In a Locked Box mechanism, the purchase price is fixed based on historical audited balance sheets at a past reference date, with value leakage (Value Leakage) strictly prohibited thereafter; In Completion Accounts, the preliminary price is adjusted post-closing based on actual net working capital and net debt at the closing date

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