July 2020
Thursday, July 2, 2020
Earnouts: Taking a Wait and See Approach to Valuation of Closely Held Companies
Topics to be covered:
- Most highly negotiated and litigated provisions in earnout agreements
- Post-closing operations – control by buyer, but informational access to seller
- Defining key metrics – objective, measurable and potential traps
- Relationship of earnouts to senior debt and other preferential returns
- Debt issues and how it impacts financial results – and post-closing payments
- How earnouts are different than escrow and holdbacks
Faculty: Frank Ciatto, Venable LLP, Washington, DC, James DePaoli, Venable LLP, Washington, DC, and Daniel G. Straga, Venable LLP, Washinton, DC