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<blockquote data-quote="futuretraineesolicitor" data-source="post: 97497" data-attributes="member: 4098">In terms of other ways of allocating responsibilities,&nbsp; I can think of two more, [USER=17155]@AvniD[/USER] [USER=17165]@George Maxwell[/USER] [USER=16764]@James Carrabino[/USER], please correct me if I'm wrong here. One would be transferring a certain amount of money in an escrow account, so if you've identified a particular thing that could cause harm after acquiring the company (let's say an environmental issue or a lawsuit filed by an employee who could totally file another suit in future or could prompt other employees to sue on a different ground), you could try and quantify it - give it a monetary value- say 1 million GBP and then accordingly, ask the seller to put that money in an escrow account. If that particular event materialises, the buyer could turn to the escrow account and use that money. If that particular event doesn't materialise, the seller could have his money back.Another would be a purchase price reduction. For example, if you had agreed on a certain sum to buy the other company (say 5 million dollars ), and suddenly during due-diligencing the affairs of the target company, you spot something bad that could cause harm in future, you could talk to the seller and tell him that you'd like to reconsider the purchase price and offer him 4 million dollars instead of the 5 million.I just know of these two, would love to know more about other ways if there are any.Also, I'm confused between the escrow and the purchase price reduction method- basically, when to do which?Thanks.</blockquote>

[QUOTE="futuretraineesolicitor, post: 97497, member: 4098"] In terms of other ways of allocating responsibilities, I can think of two more, [USER=17155]@AvniD[/USER] [USER=17165]@George Maxwell[/USER] [USER=16764]@James Carrabino[/USER], please correct me if I'm wrong here. One would be transferring a certain amount of money in an escrow account, so if you've identified a particular thing that could cause harm after acquiring the company (let's say an environmental issue or a lawsuit filed by an employee who could totally file another suit in future or could prompt other employees to sue on a different ground), you could try and quantify it - give it a monetary value- say 1 million GBP and then accordingly, ask the seller to put that money in an escrow account. If that particular event materialises, the buyer could turn to the escrow account and use that money. If that particular event doesn't materialise, the seller could have his money back. Another would be a purchase price reduction. For example, if you had agreed on a certain sum to buy the other company (say 5 million dollars ), and suddenly during due-diligencing the affairs of the target company, you spot something bad that could cause harm in future, you could talk to the seller and tell him that you'd like to reconsider the purchase price and offer him 4 million dollars instead of the 5 million. I just know of these two, [B]would love to know more about other ways if there are any. Also, I'm confused between the escrow and the purchase price reduction method- basically, when to do which?[/B] Thanks. [/QUOTE]

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