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Post-Closing Adjustments: The Mechanics of True-Ups

 Post-Closing Adjustments: The Mechanics of True-Ups
CPE Credit

Program Type: Recorded Webinar (Audio, PPT)
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing.
Advanced Preparation: Some M&A transaction experience involving corporate acquisitions and/or divestitures.
Delivery Method: Group Internet-Based
CPE Credits: One (1) Hour
Fields of Study: Accounting
Item Number: 16PMA0819
Shipping Weight: 0lbs. 0oz.
Price: $80.00
Program Description

In most M&A transactions, modifications must be made to the purchase price resulting from adjustments to the closing-day balance sheet once the actual balances are known post-transaction. This process usually involves the settling of certain accounts which often results in moneys being transferred from one party to the other. Hence, it is important to clearly formulate the metrics and adjustment mechanisms that guide the "true-up" process and pay careful attention to the interplay between the purchase price adjustment and indemnification provisions in the acquisition agreement. This webinar explores the main issues and techniques involved in the post-closing adjustment process and provides an overview of the best practices in this area.

Learning Objectives

After completing this webinar, attendees will be able to:

- Identify the right metrics for a purchase price adjustment
- Describe the components of the adjustment mechanisms most commonly used
- Assess the likelihood of overlapping or double-counting due to other transaction provisions
- Articulate the most common causes of disputes concerning post-closing adjustments and how to prevent them

Who Should Attend

Investment bankers, M&A advisors, Investment and financial analysts, CPAs, Financial officers, CEOs and CFOs, Transaction lawyers


Enrique Brito, MBA, CFA, CVA, CM&AA
Mr. Enrique Brito is Partner and practice leader of Corporate Advisory Services at Tatum, an executive advisory firm in Washington D.C. area. He is also managing director at Kaizen Consulting Group, an M&A advisory firm based in Reston, Virginia. Previously, he was Senior Managing Director at The McLean Group, LLC, a national middle market investment bank in Washington D.C. Mr. Brito focuses on advising owners of middle market businesses on how to maximize and harvest business value through the implementation of growth strategies (acquisitions, capital formation, value enhancement) and transition plans (preparation for sale, transaction structuring, and negotiation).

Mr. Brito has more than 25 years of experience in investment banking and corporate finance. He has been involved in transactions in the U.S. and in several Latin American countries including Mexico, Venezuela, Colombia, and Peru. He is a national instructor in mergers and acquisitions, negotiation, and business valuation topics and is a regular contributor to local business publications as well as a speaker at national conferences on M&A topics.