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

Deadline Looms for Employers to Provide CCPA Notices

As we have reported previously, the California Consumer Privacy Act (CCPA) will take effect on Janua...

Read More >

Democratic Presidential Contender’s New Plan Calls For Protections For Gig Workers

The Gig Economy has caught the attention of at least one presidential candidate who has unveiled a p...

Read More >

[Webinar] Managing M&A Opportunities and Risk for Japanese Investors During COVID-19 and Beyond - June 4th, 7:00 am - 8:00 am CEST

The COVID-19 pandemic is bringing unprecedented disruption to the global M&A market. Even in today’...

Read More >

COVID-19 Update: California Legislators Urge Bay Area Counties to Relax Restrictions on Housing Construction

On April 16, 2020, sixteen California legislators urged Bay Area counties to relax the restrictions ...

Read More >

NLRB Majority Curtails Review of Many Common Work Rules

On October 10, 2019, the National Labor Relations Board issued an important decision in LA Specialty...

Read More >

Wisconsin Court Applies the Economic Loss Doctrine to Bar Negligence Claims for Purely Economic Losses

In Mech. Inc. v. Venture Elec. Contrs., Inc., No. 2018AP2380, 2020 Wisc. App. LEXIS 170, the Court o...

Read More >