Buyers, Sellers Increasingly Use Earnouts to Cope With Purchase Price Anxiety
- Topics:
- GAAP and GAAS,
- GAAS
- Tags:
- Bank Of America Corp.,
- Seller,
- Performance Management,
- Mergers & Acquisitions,
- M&A,
- Investment,
- Human Resources,
- Finance,
- Buyer,
- Workforce Management
- Source:
- Bank of America
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Overview: Given the uncertainty of today's economic climate and the performance challenges it creates for companies, it is not surprising that buyers in merger and acquisition deals have been reluctant to pay high prices without some assurance of the acquisition's performance. Sellers, in turn, may wish to participate in future earnings as a way to make the deal more attractive to them. To help meet the needs of both the buyers and sellers and help them complete transactions, both parties and their advisors are increasingly turning to earnouts.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Dec 2002 | Pages: 3
