You may be planning to sell your company or have one or more companies in mind for purchase. Or you are an (acquisition) adviser with an interest in purchase price mechanisms. In each situation, if the intended (acquisition) sale involves shares, you will need to establish a mechanism to determine the purchase price. Please note that the information in this white paper is not applicable in asset/liability transactions.
This whitepaper addresses the question of which system is chosen to determine the purchase price in a (re)purchase of shares. We do not mean the initial level of the purchase price; that is up to the market and valuation experts. It is about the question: how does one set the date of (sale) purchase and what happens to interim changes in value? After all, companies are always sold going concern and an acquisition process soon takes several months. So the value of the company moves over time. That affects the amount of the purchase price. How are those movements reflected in a purchase price adjustment? How is that shaped?
Would you like to receive the whitepaper? If so, please contact Pieter Verloop.