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Purchase Price

Paul Hastings LLP

Public Company Watch: October 2024

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In the October edition of our Public Company Watch, we cover key issues impacting public companies, including a recent SEC enforcement sweep, key takeaways stemming from the SEC’s recent adoption of EDGAR Next, two recent...more

Balch & Bingham LLP

2024 M&A Outlook: How Changing Deal Terms Reflect a Shifting Market

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The M&A landscape is beginning to evolve, with shifts in market dynamics shaping deal terms and bargaining dynamics for 2024 and beyond....more

Goodwin

Adjustment Escrows in M&A: Why the 1% Rule Doesn’t Always Apply

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What is the typical size of an adjustment escrow? A common rule of thumb is 1% of overall deal value, but the size varies depending on deal value and the underlying characteristics of the business (including the net working...more

Womble Bond Dickinson

Earnout Deals Surge in Uncertain Times – What M&A Professionals Need to Know About Earnouts

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The M&A market has witnessed a major increase in the use of earnout deal terms after 2021. The number of deals with earnout provisions jumped from around 20% in 2021 to 33% in 2023....more

Amundsen Davis LLC

Indemnification Escrow Accounts – What Are They and How Should They Be Used?

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Parties to business acquisitions use indemnification clauses to provide security for harm that may result following the closing of the transaction. Indemnification obligations require one party to compensate the other for...more

Goulston & Storrs PC

What's Market: Purchase Price Adjustments

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Purchase price adjustment provisions are designed to reflect changes in the target's financial condition that occur prior to the closing of the transaction. For example, if on January 1, a transaction is valued, or priced, at...more

Kerr Russell

Preparing Your Business for Sale

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The sale process can be a long, stressful, physically and emotionally draining, and disruptive to ongoing business operations. Planning well in advance of the desired sale date and engaging experienced professional advisors...more

DarrowEverett LLP

Maximizing Value: The Art of Purchase Price Allocation in Real Estate Deals

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When a business is sold, the most important overall aspect of negotiations between a cautious buyer and determined seller may be due to the agreed-upon purchase price for the business. However, when the buyer is purchasing...more

Barnea Jaffa Lande & Co.

Conditional Payment (Earn-Out)

In merger and acquisition (M&A) transactions, the earn-out mechanism serves as a strategic tool for conditional payment based on the prospective performance of the acquired entity. This mechanism is particularly prevalent in...more

Rivkin Radler LLP

NY Court Finds Unlawful Fee Splitting in Practice Acquisition

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The prohibition on fee splitting by professionals is alive and well in New York. The sale of a dental practice from one dentist to another was found to violate the state’s prohibition against fee splitting because the...more

Ankura

Purchase Price Allocations of Software Companies [Data Study]

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35 Ankura's analysis of the 2023 purchase price allocation for transactions involving software and IT services companies by U.S.-based acquirers provides valuable insights into how developed technology, customer...more

Tonkon Torp LLP

Earn-Outs: Bridging the Valuation Gap

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Do we value our possessions more just because we own them? Sometimes. Does this association of value apply to businesses? Almost always. The Cost of Risk- Buyers and sellers of a business often find themselves with a...more

Tonkon Torp LLP

Understanding Rollover Equity

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For the right transaction, a rollover of equity can add value for the buyer and the seller. Rollover equity is ownership in the buyer or its affiliates that is issued to a seller as payment for all or a portion of the...more

Strafford

[Webinar] Drafting Asset Purchase Agreements: Reps, Warranties, Covenants, Conditions, Indemnity, and Other Provisions - July...

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This CLE course will guide deal counsel in drafting and negotiating asset purchase agreements. The panel will discuss legal considerations when negotiating representations and warranties, indemnities, covenants, closing...more

Dunlap Bennett & Ludwig PLLC

Earnouts, Escrows, And Holdbacks: Alternative Payment Options For Structuring Your Next Business Purchase Deal

In business purchase and sale transactions, the purchase price leads to some of the most contentious push and pull in negotiations. A majority of disagreements arise from each party’s valuation of the target company as well...more

Goulston & Storrs PC

Key Takeaways: 2023 ABA Private Target Mergers & Acquisitions Deal Points Study

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The Private Target Mergers & Acquisitions Deal Points Study (“the Study”) is published on a bi-annual basis by the Market Trends Subcommittee of the ABA Business Law Section’s M&A Committee, which I am happy to serve on. The...more

Mayer Brown

Crypto Asset Management: Expansion Roadmap for Managers and Investors (Part 1)

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Asset managers who invest in crypto assets are expanding their footprint as managers of capital for investors. Investors are increasingly seeking out asset managers that have expertise in crypto assets. Likewise, crypto asset...more

Goulston & Storrs PC

What's Market: Separate Escrows for Purchase Price Adjustments

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In mergers and acquisitions (M&A) transactions, the definitive purchase agreement, whether asset purchase agreement, stock purchase agreement, or merger agreement, typically contains provisions for post-closing purchase price...more

Winstead PC

Working Capital and Accounts Receivable

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When acquiring or selling a company, many nuances exist in various stages of the process, some of which are not readily apparent on their face. One of those nuances is the interplay between accounts receivable and working...more

Procopio, Cory, Hargreaves & Savitch LLP

Closing the Deal: Three Steps to Crafting the Right Term Sheet

Many successful legal agreements begin with the term sheet; a document listing the key points of the business deal that has been struck between the parties. A deal point can be as simple as the purchase price, although with...more

Dickinson Wright

When Development Deals Go Wrong, Damages Come in the Form of Land Value, Not Lost Profits

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This column was originally published on RENX.ca. When a deal to buy and sell land for development goes awry, an innocent purchaser can sue for the damages suffered....more

International Lawyers Network

Buying and Selling Real Estate in Chile (Updated)

KEY ASPECTS OF REAL ESTATE ACQUISITIONS UNDER CHILEAN LAW - I. STANDARD FORMS OF AGREEMENTS - 1. Offer to Purchase: Offer to Purchase sets forth Buyer's offer of price, date for closing, contingencies for inspections,...more

Stevens & Lee

Evading Transaction Roadblocks: Strategies for Common Late-Stage Dealbreakers

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After completing the arduous task of preparing to sell a business and agreeing to the terms in principle for a transaction in which a business owner will sell his or her “life’s work,” selling business owners (“Seller” or...more

Cozen O'Connor

In for a Dime, in for a Dollar (or Maybe Two?)

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Missouri AG Andrew Bailey filed a lawsuit against Dolgencorp, LLC, which does business as Dollar General, alleging the retailer violated the Missouri Merchandising Practices Act (MMPA) by routinely deceiving consumers about...more

Kerr Russell

Adjustments To Net Working Capital For A Business Transaction: The Art And The Science

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Generally, net working capital is determined by subtracting the business’ current liabilities from its current assets, excluding cash. Transactions are commonly structured on a “cash free” basis with the seller retaining the...more

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