X
01Jul

How to use earnouts in M&A transactions during COVID-19

The COVID-19 pandemic has caused a valuation gap between buyers and sellers in certain industries. As a result, we expect parties to increasingly turn to earnouts, a form of contingent purchase price consideration, to help close transactions. Buyers, sellers and M&A practitioners must carefully consider the complexity of earnout terms to create the optimal structure, align the parties’ incentives and avoid future disputes. Below are a few key considerations to keep in mind when drafting and...
By: Thompson Coburn LLP
Source Url: https://www.jdsupra.com/legalnews/how-to-use-earnouts-in-m-a-transactions-47137/

Related

Foreign direct investment reviews 2020: A global perspective - Finland

Deals are generally not blocked in Finland, and are reviewed mostly when in the defense and dual-use...

Read More >

Private Equity Update: 1st Circuit Reverses Imposition of Pension Plan Withdrawal Liability

The Multiemployer Pension Plan Amendments Act of 1980 ("MPPAA") amended the Employee Retirement Inco...

Read More >

The 12 Days of California Labor & Employment Series – Day 11: Arbitration – To Be or Not To Be

It's the end of the year and while everyone is busy, employers in California should be aware of new ...

Read More >

Ninth Circuit Reverses Class Action Settlement Based on Notice Concerns and Insufficient Scrutiny

Class action settlements are complicated. They often take months to negotiate. The last thing the la...

Read More >

Home Sweet Home In the LHWCA Danger Zone

In Expeditors and Production Service Company, Inc. v. Director, OWCP (Garrick Spain), No. 18-60895 (...

Read More >

Five Employer Considerations as Hurricane Dorian Approaches Florida

Hurricane Dorian is being tracked carefully as the storm approaches Florida, just in time for the ho...

Read More >