The total purchase price paid by the buyer should also reflect the assumption of liabilities stated on the target's balance sheet, but it should exclude all off balance sheet liabilities.

Question

Quizplus · Accepted Answer

The total purchase price paid by the buyer should reflect not only the assumption of liabilities stated on the target's balance sheet but also consider any significant off-balance sheet liabilities, as these can affect the true value of the company being acquired.

The Total Purchase Price Paid by the Buyer Should Also