Harvard University’s tax-exempt status has been questioned by the Trump Administration—with Harvard responding that there is no legal basis for a revocation. The Administration’s action...
Many states are implementing energy benchmarking programs to track and identify energy use in buildings. These programs aim to encourage energy efficiency and reduce greenhouse gas emissions. Check out...
When engaging in M&A discussions, parties should prioritize rigorous confidentiality measures to protect sensitive business information. Our new confidentiality agreement playbook offers valuable insights...
This practice note discusses Institutional Review Boards (IRBs) within the United States, including their purpose, history, and regulatory framework. The note is a valuable resource for advising life sciences...
Do you need guidance on tipped employee requirements under the Fair Labor Standards Act (FLSA)? Read our newly published checklist, Tipped Employees Checklist (FLSA) , for helpful information. Read now...
2022 proved to be less SPAC-tacular than anticipated for publicly held special purpose acquisition companies (SPAC) seeking business combinations with a private target (de-SPAC). While the market had its ups and downs in 2022, the use of earnouts in nearly half of the de-SPACs remained consistent between 2021 and 2022.
Practical Guidance surveyed 154 transactions identified as de-SPACs and announced between January 1, 2022, and December 31, 2022. According to Markets Standards, 64 of the surveyed de-SPACs (42%) included earnouts as part of the merger consideration. In de-SPAC transactions, earnouts refer to the right of sponsors, key employees, and/or target company stockholders to receive additional equity if certain milestones are met, usually based on the combined company’s post-closing public stock price. In some de-SPACs, earnouts were based on the achievement of revenue targets during earnout periods.
Market Standards is a powerful tool for researching and comparing over 38,000 M&A transactions from 2008 to the present. Leverage Market Standards to find on-point precedent language on the most highly negotiated transactions with over 150+ M&A deal points. To learn more about how it can help M&A attorneys work more efficiently, click here. Discover Emerging Trends in M&A Transactions
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