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Earn-outs
Practical Law UK Practice Note 9-107-3755 (Approx. 19 pages)
Earn-outs
by Practical Law Corporate (based on material originally contributed by CMS Cameron McKenna Nabarro Olswang LLP)
A note addressing the use of earn-outs in share purchase transactions, where all or part of the purchase price will be calculated by reference to the future financial performance of the target company. It highlights some of the advantages and disadvantages of earn-out arrangements, and the key issues to consider when structuring an earn-out.
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