Due to the economic uncertainty created by COVID-19, buyers and sellers of companies are less likely to predict the future performance of a target business, and M&A transactions are more likely to include earnouts (and in more significant amounts) than before. Earnouts can be useful in allocating the future risks and rewards of a target business but have become more challenging to design and implement in the current economic environment.

In this session, our M&A attorneys will examine the components of a well-structured earnout and discuss best practices for designing earnouts to minimize disputes.

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