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LMSSIO

Locked Box Pricing

Locked Box is a pricing mechanism in M&A transactions where the purchase price is based on the target company's financial statements at a specified historical date, known as the locked box date. From this date to the closing date, the seller is prohibited from extracting value from the company, ensuring price certainty and protecting the buyer against financial deterioration.

IRI: http://lmss.sali.org/RCJ5C096Y1Os0YHlEC3q4Dx
Branch: Objectives

Also known as

Fixed Price Mechanism, Locked Box Date Mechanism, Pre-Determined Price Mechanism

Examples

The Locked Box Mechanism simplifies the transaction by eliminating the need for post-closing adjustments.

Ancestry path

Objectives Transactional Objectives Mergers and Acquisitions Objectives Deal Protection and Related Provisions Purchase Price Adjustment Mechanism

Generated from sali-legal/LMSS at 3f9ac0c9357b (2026-03-10). JSON