Use this button to switch between dark and light mode.

Market Trends 2021/2022: Earn-outs in Public-Private Deals

August 16, 2022

Earn-outs are a useful tool when transaction parties do not agree on the value of the target company. An earn-out is a compromise that makes a portion of the purchase price contingent on performance of the target business post-closing. Earn-outs are deal-specific, and the terms are customized by the parties—the duration of the earn-out period, the metrics or milestones, the earn-out amount, and acceleration triggers will vary significantly among deals. Explore some of the market trends in earn-outs in deals involving publicly held acquirers and privately held targets during 2021 and the first half of 2022.

READ NOW »

Related Content

  • Earn-Out Clause
    Start drafting a clause using this all cash earn-out clause in which the buyer will make a contingent payment to the seller based on the achievement of a financial milestone.
  • Earn-out Clauses
    Understand the basics of earn-outs and distinctions for pro-seller and pro-buyer drafting.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.  


Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+