Earn-Outs | The Portfolio Partnership

Earn-outs – What You Need To Know

by Ian Smith | May 11, 2016 | Acquisitions

The Philosophy of Earn-Out deals The concept is quite simple. The buyer’s perception of value is lower than the seller’s aspiration on price. This gap is usually fueled by differing views on the potential growth of the target company. The acquirer may be...

Documenting the Earn-Out – Leverage Counts – Guest Post from Tim Bowers of K&L Gates LLP

by Ian Smith | Dec 17, 2010 | Acquisitions, Exiting your business, Selling, Valuation

As a follow-up to his November 26, 2010 installment of The Smith Report (entitled Buying a Company – Great time to deploy Earn-Outs), Ian asked me to take a deeper dive into the legal documentation of earn-out provisions in the M&A context. The earn-out is, as Ian...

Buying a Company – Great time to deploy Earn-Outs

by Ian Smith | Nov 26, 2010 | Acquisitions, Buy-outs

When Genzyme announced recently it was exploring a new deal structure to help resolve the impasse on price with bidder Sanofi-Aventis, it highlighted a great tool in the M&A world, the earn-out deal. They called the structure a CRV or Contingent Value Right, an...