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

Hidden Costs in Bargain Acquisitions of Businesses: Exposure to Fraudulent Transfer Claims

As the pandemic-induced recession continues, there will be increasing opportunities for investors to...

Read More >

The Impact of COVID-19 on M&A Transactions - Part 1: Due Diligence and Operational Issues

The COVID-19 pandemic has caused severe disruption, distress and uncertainty for companies across al...

Read More >

Halloween Parties Can Leave Employers “Haunted” By Discrimination

The last week of October can result in “double, double toil, and trouble” for employers. While wor...

Read More >

North Carolina Court Awards $41 Thousand-Plus Penalty For Failure To Produce Documents Requested By Plan Participants

Section 104(b)(4) of ERISA provides that a plan administrator must respond to a written request for ...

Read More >

COVID-19 and Australia's Foreign Investment Regime

The Situation: The Australian Government has temporarily reduced the monetary thresholds under the F...

Read More >

Porous Materials to Pay $93,000 to Settle EEOC Harassment and Retaliation Suit

Former Plant Manager Bullied Employees, Then Fired Employee Who Complained, Federal Agency Charged -...

Read More >