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Help Acquisition Finance · Due diligence, legal and tax Locked box or completion accounts: what's the difference?
Help guide · Acquisition Finance · Due diligence, legal and tax 1 min read

Locked box or completion accounts: what's the difference?

They're two ways of fixing the final price in a share purchase. A locked box sets the price from a past balance sheet. Completion accounts adjust the price after completion, based on the company's actual position on...

They're two ways of fixing the final price in a share purchase. A locked box sets the price from a past balance sheet. Completion accounts adjust the price after completion, based on the company's actual position on the day.

Locked box

  • The price is fixed from a balance sheet at an agreed date before completion.
  • The seller promises no value leaks out between that date and completion, such as dividends or unusual payments to themselves.
  • You carry the trading risk in between, good or bad.
  • Simpler and more certain: you know the price at signing.

Completion accounts

  • The price is adjusted after completion for the company's actual cash, debt and working capital on the day.
  • The seller carries the trading risk until completion.
  • Takes longer, and the adjustment can lead to disagreements.

Why it matters for your funding

The final price affects how much you need to borrow and when. A post-completion adjustment can mean paying extra, or getting money back, after the deal.

Get advice

Your solicitor and accountant will recommend which suits your deal.

Last reviewed: 8 October 2026

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