Balance Sheet Date

Legal Definition: The balance sheet of Seller as of December 31, 20XX, is referred to herein as the “Balance Sheet” and the date thereof as the “Balance Sheet Date.”

Plain English Definition: This is the date of the most recent audited or reviewed balance sheet for the Business. The date is used as a benchmark for certain representations and covenants because it is the most recent date for which the Business’s financials have been evaluated by an independent third party.