One of the often overlooked money issues in the purchase and sale of a business has nothing to do with the purchase price, but rather deals with what are known as closing adjustments. Without a thorough review of which adjustments should be made at the closing, a seller or purchaser can leave a substantial amount of money on the table. The basic concept of closing adjustments is that if the seller has paid an amount in advance which will benefit the purchaser after the closing, then the purchaser should reimburse the seller for the amount that applies to the period after closing. Conversely, if an amount payable in arrears is paid by the purchaser after closing and covers in part a period before the closing, then the seller should reimburse the purchaser for the portion of the amount that applies to the period before closing. An example of the first instance would be if the seller pays annual personal property taxes in the amount of $50,000.00 on April 30, 2016 that are paid for the entire year of 2016 and closing occurs on July 1, 2016. In that event, the purchaser should reimburse the seller for one-half of the personal property taxes paid (for the period from July 1 to December 31). On the other hand, suppose that closing occurs on December 31, and a $10,000 monthly lease payment on a piece of equipment is paid in arrears by a purchaser on January 15 for the period from December 15 to January 15. In that case, the seller should reimburse the purchaser $5,000 for one-half of that monthly lease payment. There are many other adjustments arising out of leases, employee benefits, payroll and other items that should be carefully reviewed to make sure that there is a proper allocation of operating expenses at the time of closing.