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Focus (Forum & Focus)

Jun. 13, 2008

Buyers and Sellers Should View Earn-Outs as a Tool of Last Resort

Earn-outs should be viewed as a tool of last resort and should not be entered into lightly, writes Scott Joachim. - Forum Column

FORUM COLUMN

By Scott Joachim
This article appears on Page 6

      The lack of available debt financing on historically acceptable terms is not the only factor impeding M&A deal activity during the current credit crunch. The resulting chasm between buyers and sellers on valuation, while related, is a significant cause in its own right. Peak valuations that were routinely accepted by buyers as part of the privilege...

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