Earnouts

Business Services

Earnouts: A Mechanism to Solve the Current Valuation Gap

Buyers are more focused on diligence while sellers have inflated valuation expectations from the market peak of 2021.

March 1, 2024

Biotech Milestones: Almost Always Included, Almost Never Hit

Most biopharma deals are for companies without any products on the market, which require FDA approval after costly and time-consuming clinical trials.

November 10, 2023

PE Firms Get Creative with Add-on Deal Structures

Many sponsor-backed firms are building out their platforms by focusing on the inorganic growth of existing portfolio companies to boost Ebitda numbers.

June 13, 2023

End of The Liquidity Party–Now What?

Cheap money is gone, but opportunity still knocks in the middle market.

March 6, 2023

Earnouts Bridge the Expectation Gap Between Buyers and Sellers

19 percent of all M&A deals completed last year involved an earnout clause, according to the SRS Acquiom Deal Terms Special Report.

February 8, 2023

Due Diligence Shifts on Covid-Related Earnings Bump

“There have always been Ebitda adjustments,” Bain's Ewald tells us.

November 15, 2021

Overseas Bidders Add a Fresh Catalyst to M&A Volumes

Grant Thornton's Elliot Findlay weighs in on increased merger appetite from abroad.

October 26, 2021

Labor Shortages, Supply Chain Disruptions Loom in Deal Negotiations

Dealmakers see earnout use climbing to bridge bid-ask gap.

October 6, 2021