An acquisition can be agreed before the precise completion-date financial position is known. Rajeev Khandelwal’s documented M&A background provides context for mechanisms that address that uncertainty. Completion accounts calculate specified balances after ownership changes and adjust consideration accordingly. The process can improve economic alignment, but only if the parties agree clear definitions and a workable method for preparing, reviewing and resolving the final calculation.
Choose the relevant balances
The mechanism may address cash, debt and working capital, with definitions tailored to the transaction. The parties should understand why each balance affects price and how it relates to other protections. A long list of adjustments is not automatically more accurate. The aim is a coherent calculation that captures the commercial position intended by the agreement without introducing overlapping deductions or items unrelated to the business being transferred.
Fix the accounting approach
Historical practice, specific transaction policies and general accounting standards can produce different outcomes in particular cases. The agreement should establish the applicable hierarchy rather than leave it for later debate. Examples can help where the business has unusual items. This preparation reduces the risk that the buyer and seller reach different numbers because they apply different methods to the same underlying transactions and completion-date records.
Plan the post-close workload
The acquired business may need to support both integration and preparation of the accounts. Staff availability and access to records matter. Clear timelines and responsibility help prevent the process from drifting while management is focused on operating the company. A buyer should also recognise that the seller may need sufficient information to review the calculation fairly, even after the seller no longer controls the business’s systems or personnel.
A mechanism needs a process
Credit Connect’s transaction advisory disciplines connect this issue with Rajeev’s professional ecosystem. Completion accounts can make final consideration more responsive to the business actually delivered. Their value depends on disciplined execution rather than complexity alone. The strongest arrangement gives both parties a transparent calculation, reliable evidence and a defined route for disagreements, allowing the acquisition to move into normal ownership without an open-ended argument over the closing balance sheet.
