Overnamebalans

An acquisition balance sheet is a specific balance sheet prepared upon the acquisition of a business or company. It sets out the valuation of the assets and liabilities as at the acquisition date, thereby providing the buyer and seller with insight into the precise net asset value.

The acquisition balance sheet is relevant because it frequently serves as the basis for purchase price adjustment mechanisms, such as working capital adjustments or earn-out provisions. Without an accurate acquisition balance sheet, disputes may arise regarding the amount of the purchase price after closing.

In practice, the acquisition balance sheet is typically prepared by the financial advisers of the buyer or seller and reviewed by an accountant. The parties often stipulate in the purchase agreement the manner and timing of its delivery and approval.