Almadar An acquisition being negotiated out of an office in KAFD has completion accounts and earn-out mechanics buried in the contract that can move the final number substantially.
This works closely alongside consolidation advisory, which addresses how the acquired entity gets accounted for afterward, while this work addresses the accounting mechanics of the deal process itself, before and at completion.
Why the accounting mechanics in a deal genuinely matter
A completion accounts mechanism with an unclear or poorly defined working capital target can shift the effective price by a material amount without either party fully realizing it during negotiation, since the accounting definitions buried in a sale and purchase agreement are just as commercially significant as the headline price itself.
Where this connects to working capital
The working capital target embedded in a typical completion accounts mechanism draws directly on the same analysis as working capital optimization work, since understanding a target's normal working capital level requires the same rigor whether the goal is internal optimization or setting a fair deal price.
A common Saudi scenario
A Riyadh-based group acquiring a Riyadh-based distributor needs completion accounts mechanics that genuinely reflect the target's normal operating cash cycle, not a generic template that doesn't account for how that specific business's receivables, payables and inventory actually move throughout the year.
What we deliver
Review and negotiation support on the accounting mechanics embedded in transaction documents, preparation or review of completion accounts once the deal closes, and technical accounting input on how the transaction itself should ultimately be recorded. This connects directly to technical accounting advisory for any specific judgment calls the transaction structure raises.
Why involving finance early changes the outcome
Deals are often negotiated primarily by commercial and legal teams, with finance brought in only once the sale and purchase agreement is largely drafted. By that point, accounting definitions that would have been simple to clarify during negotiation become far harder to renegotiate, which is why early involvement typically pays for itself many times over.
Groups pursuing acquisitions or disposals involving targets in Riyadh's trading sector or Riyadh industrial operations need the completion accounts mechanism to reflect each sector's genuinely different working capital and inventory dynamics, rather than one generic mechanism applied regardless of the target's actual business.