Money Now or Later? Earn-outs in M&A Agreements

Parties may agree to sweeten the deal by including an earn-out after closing. While economically advantageous for the parties, earn-outs can become the source of disruptive post-closing disputes. It is imperative to understand the underlying metrics and carefully document dispute resolution procedures to avoid or mitigate these potential disputes. Brush up on earn-out clauses and relevant buyer and seller distinctions before negotiating the next turn of your M&A transaction agreement.

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Related Content

• Market Standards Publicly Filed Transaction Agreements
  View publicly filed transaction agreements with earn-outs available in Market Standards filed between June 1 and July 31, 2023, then customize this search by adding any of 150+ deal point filters.

• Earn-Out Clauses
  Refresh your knowledge of the basics of earn-outs and key drafting considerations before diving into your next transaction agreement.

• Market Trends 2021/22: Earn-Outs in Public-Private Deals
  Find out what is trending in earn-out provisions across a survey of recent public-private deals.

• Contingent Value Rights
  Explore the different types of contingent value rights utilized in M&A transactions to defer a portion of the purchase price subject to the resolution of certain contingencies.

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