Glossary
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Closing
« Back to Glossary IndexIn the context of mergers and acquisitions (M&A), the term “closing” refers to the final step in the process of completing a deal. It is the point at which all the conditions and requirements outlined in the purchase agreement have been met or waived, and the transfer of ownership and control of the target company officially takes place.
The closing is a crucial phase in the M&A process and involves several key activities, including finalizing legal documents, payment of the agreed-upon purchase price, conditions outlined in the purchase agreement satisfied, assets and control transferred, employees, customers and suppliers informed, and post-closing adjustments are calculated and disbursed. Once the closing process is complete, the deal is considered finalized, and the buyer assumes control of the acquired business.