With the volatility in the M&A market over the past few years, earnouts have become increasingly popular in M&A transactions as a means of “bridging the gap” between a seller’s (higher) and a buyer’s (lower) valuation. In a transaction with an earnout, a portion of the purchase price is paid to the seller after closing and only if the company achieves agreed-upon objectives.

Topics:  as    m&a   bridges   earnout   seller   

 

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