Earnouts are here to stay, says a recent Grant Thornton dealmaker survey. An overwhelming 94 percent of the 163 respondents surveyed expected to deploy the contingent payments in at least 70 percent of their deals in the next six months. That prediction, while coming from a much smaller sample size than SRS Acquiom’s 2021 M&A Deal Terms Study, is still a marked revision upwards from the near 20 percent of deals deploying earnouts last year. The surge in contingent payments suggests M&A practitioners are less sanguine on the market rally’s prospects than it appears.

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