November 12, 2020

Earnouts in the Era of COVID-19: Best Practices for Designing Earnouts to Avoid Disputes

Earnouts in the Era of COVID-19:  Best Practices for Designing Earnouts to Avoid Disputes

November 12, 2020

In this uncertain environment after COVID-19, earnouts are likely to be used more frequently to bridge valuation gaps between buyers and sellers, and to make up a larger percentage of the purchase price.  Earnouts, however, can be very difficult to design and implement, and often lead to disputes.  An earnout that has been carefully designed by the parties is worth the upfront effort if it can avoid a dispute or lead to an efficient resolution. This webinar brings together the perspectives of  veteran M&A attorneys with a dispute management director at SRS Acquiom.  Our panelists will examine the components of a well-structured earnout and discuss best practices for designing earnouts to minimize disputes. This webinar will also include insights from the latest ABA Private Target Deal Points Study regarding earnout provisions in purchase agreements, and recent enforcement trends that SRS Acquiom has seen since the start of the pandemic.  

Panelists:

  • Paul Pryzant, Seyfarth Shaw LLP, Houston TX
  • Suzanne Saxman, Seyfarth Shaw LLP, Chicago, IL
  • Andrew Noble, SRS Acquiom, San Francisco, CA
  • Lisa Hedrick, Hirschler Fleischer, Richmond, VA

Presented by: Mergers and Acquisitions Committee

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