Completion Mechanisms – Completion Accounts vs Locked Box Accounts (Part 1)

A very basic question when structuring an M&A transaction is which completion mechanism[1] to use. In the article below, we touch upon the legal aspects of the two most widely used completion mechanisms in the acquisitions of private businesses: Completion Accounts Mechanism and Locked Box Accounts Mechanism. For the sake of good order, we’ve split our articles into several sections: (i) General Notes and Preliminary High-Level Summary; (ii) Completion Accounts Mechanism in details; (iii) Locked Box Accounts Mechanism in details; (iv) Detailed Practical Comparison.