Understanding Earnouts in an M&A Deal

When companies are involved in M&A deals, determining the final purchase price is often one of the most difficult terms for buyers and sellers to agree on. One strategy that can be used to help parties reach an agreement is to set up an earnout, a financial arrangement that ties a portion of a deal's purchase price to the future performance of the business being acquired. To learn more about earnouts and how they can affect M&A negotiations, listen to our new podcast featuring Berenzweig Leonard Counsel Connie Phelps Neigel and Managing Partner Declan Leonard.