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
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