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Mergers & Acquisitions

Aug. 18, 2011

Earnout: An essential tool for today’s M&A Lawyer

A well-crafted earnout can lead to a win-win solution for both parties in an M&A transaction. By Donald P. Clark, Alexander C. McGilvray Jr. and Glenn Nieves of Clark & Trevithick PLC


By Donald P. Clark, Alexander C. McGilvray Jr. and Glenn Nieves


In today's uncertain economic environment, it can be a tall task to accurately determine the true value of a seller's business in a private M&A transaction. The natural tendency for a heightened valuation by a seller and the pragmatic demands on the return on investment by a buyer serve as driving forces for the valuation gaps that are widespread in today's private transactions. This ...

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