Completion Accounts Expert Witness UK

In a completion accounts mechanism, the purchase price is adjusted after completion based on the actual financial position at the completion date, typically working capital, net debt, and/or net assets compared to an agreed target.

Disputes arise when buyer and seller disagree on which accounting policies should apply, specific items such as provisioning and revenue recognition, whether reference accounts policies were consistently applied, and the correct treatment of specific transaction items.

Most SPAs contain an expert determination clause for completion accounts disputes, providing for an independent accountant (often appointed by ICAEW) to make a binding determination.

The forensic accountant supports one party's position through the determination process, analysing disputed items and producing written submissions for the expert determiner.