Minimum Adjusted Book Value Sample Clauses
The Minimum Adjusted Book Value clause sets a baseline value for a company's assets, as adjusted for certain factors, that must be met or maintained in a transaction. In practice, this clause typically requires that the seller's balance sheet reflect at least a specified minimum value after accounting for adjustments such as depreciation, liabilities, or other agreed-upon modifications. Its core function is to protect the buyer by ensuring the company retains a minimum level of net asset value at closing, thereby reducing the risk of unexpected financial shortfalls.
Minimum Adjusted Book Value. Guarantor shall at all times maintain an Adjusted Book Value of not less than the sum of (x) $450 million plus (y) 75% of the net proceeds received by Guarantor in connection with any issuance of Equity Interests in Guarantor, minus (z) 100% of the amount paid by Guarantor for the repurchase of any Equity Interests in Guarantor, in each case subsequent to November 23, 2011.