Earnout Provisions: When Litigation Arises and How to Avoid It

The use of earnout provisions, which buyers and sellers often use to bridge differing views of value, is on the rise, especially in the private equity and corporate venture capital markets. This White Paper examines how courts have addressed such provisions when disputes arise and strategies that buyers and sellers can take to protect themselves.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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