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Subject:
Purchase Price Holdback in an Acquisition
Category: Business and Money > Finance Asked by: platerrp-ga List Price: $15.00 |
Posted:
14 Mar 2005 08:04 PST
Expires: 13 Apr 2005 09:04 PDT Question ID: 494403 |
In the acquisition of a company, the buyer sometimes or oftentimes holds back a percentage of the purchase price for a short to medium period of time just in case the seller made misrepresentations, etc. I need to determine two things: 1) whether it is common or uncommon to have a holdback, and 2) what is the typical holdback range as a percentage of the purchase price. If the answer is dependent on the size of the acquisition, I am looking at a deal under $50 million. The answer should be referenced with links from a reasonably reliable third party. Thanks!!! |
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