When you purchase the shares of the business, you have an interim close and a final close. Interim close takes place when you get the keys to the building. Often when you purchase the shares of the business, the final adjustments are based on financial statements up to the date of close. Needless to say, these will not be ready on the day of closing. If you have to count inventory, it takes a while to calculate the cost of inventory. Often, a third party accountant prepares the financial statements and can take 60 to 90 days to prepare, depending on the situation. When all the information is obtained, a second closing takes place. You legally own it on the interim closing but any adjustments subject to the conditions of close are made at the second closing, additional money is paid to the former owner or he must reduce the purchase price because of the adjustments.
This article are provided for information purposes only, and are not intended as legal advice.
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