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Contract & Commercial Law vocabulary · Mergers & Acquisitions

Closing

Meaning in contract & commercial law, with examples

/ˈkləʊzɪŋ/nounCommon term

In contract & commercial law, closing means: The final stage of a deal, when the last documents are signed or exchanged, the price is paid and ownership passes to the buyer.

In Turkish: kapanış, devrin tamamlanması

How it is used

In M&A there is often a gap between signing and closing so that conditions such as regulatory approvals can be met. Lawyers prepare a 'closing checklist' and 'closing deliverables'. British lawyers usually call this stage 'completion'.

Example sentences

  1. Closing is expected once the competition authority approves the deal.

  2. At closing, the buyer will pay 80% of the price and the rest after twelve months.

Common collocations

  • closing date
  • closing conditions
  • at closing
  • closing checklist
  • between signing and closing
  • condition precedentAn event or action that must happen before a contract, or a particular obligation in it, takes effect, such as a regulatory approval.
  • share purchase agreementThe main contract in a company acquisition, under which the seller transfers shares in the target company to the buyer for an agreed price.
  • acquisitionThe purchase of a company, part of a company or a business, usually by buying its shares or its assets.
  • earn-outPart of the price in an acquisition that is paid later, and only if the business reaches agreed financial targets after the sale.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Mergers & Acquisitions

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This page explains English vocabulary for learners. It is not legal advice.