Completion Accounts vs Locked Box: Evaluating Closing Mechanisms in M&A Transactions

17 March 2023

by: Zachary Cefaratti

In mergers and acquisitions (M&A), the closing mechanisms plays a crucial role in determining the final purchase price. Two common methods for settling the purchase price are completion accounts and locked box mechanisms. This article will discuss the advantages and disadvantages of each approach, factors to consider when choosing the most suitable option, and statistics about their prevalence in M&A deals.