Basic Definition •An earnout is a risk‐allocation mechanism used in an M&A transaction whereby a portion of the purchase price is deferred and is calculated based on the performance of the acquired business over a specified time-period following the closing. Reasons for Use of Earnouts •Valuation Gap: Earnouts can bridge the business valuation gap between […]
Basic Definition An earnout is a risk‐allocation mechanism used in an M&A transaction whereby a portion of the purchase price is deferred and is calculated based on the performance of the acquired business over a specified time-period following the closing. Reasons for Use of Earnouts Valuation Gap: Earnouts can bridge the business valuation gap between
Earnouts: Defining the Target Business Read More »
The FTC’s 230-page final Rule applies to any person who sells, offers, charges, or otherwise markets a good or service with a “negative option feature,” which includes automatic renewals, continuity plans, and free-to-pay conversions, among others. (1) Prohibition on Misrepresentations: The final Rule prohibits sellers from misrepresenting any Material fact while marketing using negative option features—even if that
FTC Finalizes “Click to Cancel” Rule Read More »