Will you elaborate on the use of earnouts in M&A deals?
This is a follow-up to an earlier post on earnouts in M&A deals. I’ve embedded below a detailed presentation on earnouts I prepared last year. It is intended to serve as a stand-alone document that does not require any verbal commentary. Topics include:
- An introduction to earnouts
- Determining whether to use an earnout
- How to measure performance
- Payment of the earnout
- Control over the operation of the business
- Accounting considerations
- Tax considerations
- Psychology
- Arbitration
- The “kick-out” clause
Let me know if you have any follow-up questions.
Earnout-Presentation-20141* * *
Erik Lopez is the M&A lawyer responsible for this blog. Feel free to contact Erik at erik@jassolopez.com or +1-214-601-1887.
Erik Lopez
Partner at Jasso Lopez PLLC
Erik is an M&A lawyer with over 23 years of domestic and cross-border, public and private M&A experience. He has successfully closed hundreds of deals totaling tens of billions of dollars in value for a global client-base. He is a graduate of the University of Chicago and New York University School of Law. You can reach Erik at erik@jassolopez.com.