The deal is not yet done after signing the purchase agreement. Depending on how the deal is structured and what is contractually agreed the agreed purchase price could even change.
Whether the deal is structured as a locked box or with completion accounts
A deal can be structured as a locked box or with completion accounts. In a locked box the enterprise to equity value is “locked” on a fixed date. This date is often the latest financial year end and is called the lock box date. When using completion accounts the equity value or final purchase price is not yet known at moment of signing. A closing balance sheet and closing review needs to be performed before you know what will be the ultimate purchase price you will receive.
If an earn out is agreed
With an earn out you receive a portion of the sales proceeds in the future and only if certain conditions are realized. Often, the earn out is linked to the achievement of a future financial metric (e.g., revenue or EBITDA amount). A portion of the sales proceeds can also be paid later, but without any conditions. This is a deferred payment or deferred consideration.