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Q: Purchase Price Holdback in an Acquisition ( No Answer,   0 Comments )
Question  
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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