Purchase Price and Closing (APA part 2)

Mini-APA Series: Purchase Price and Closing

Last week, we covered the basics what exactly is an APA; how is it different than equity, the parties to the agreement, what you are selling, what you are not selling.

This week we want to talk about the fun stuff: Purchase Price and Closing

Purchase Price

• Different ways to describe it, one number, one number plus other payments later, a multiple of SDE, etc.

• Get into SDE in a bit

• First want to make sure you confirm the number is correct and when does it get paid

  • Escrow/release of escrow

• Deferred payments

  • Hold back

  • Deferred Payment