Posts Tagged ‘Earnouts’
Earnouts in M&A: A Guide to Structuring Performance-Based Payouts
Earnouts are a common mechanism in M&A transactions that help bridge valuation gaps between buyers and sellers. By tying a portion of the purchase price to the future performance of the business, earnouts provide an opportunity for sellers to achieve a higher total payout while mitigating risk for buyers. While earnouts can create alignment between…
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