Blog Archives

Court Rules That EY Earnout Calculation Was Arbitration Not Expert Determination

Introduction There are often post-closing calculations that must be made in an M&A deal. Examples are working capital and earnout calculations. Often the parties agree in advance to a dispute resolution procedure in the M&A documents in the event there

Posted in arbitration vs expert determination, dispute resolution provision, earn out, earn out dispute procedure, earn outs Tagged with: , , , , ,

Trust but Verify-Business Seller Failed to Verify Accuracy of Earnout Statement

Introduction A buyer and seller of a business often use an earnout when they can’t agree upon a purchase price. In that case, the purchase agreement provides for a buyer calculation of the earnout amount, along with an earnout dispute

Posted in earn out, earn out dispute procedure, economic loss doctrine, fraud in business sale, fraud in the inducement exception Tagged with: , , , , , ,

Business Seller Accuses Buyer of Earnout Manipulation

Introduction A seller of a business wants to receive the highest price, and payable in cash at closing. The buyer might want to pay seller’s price but is not sure it is worth that much. How do you bridge the

Posted in bad faith, earn outs Tagged with: , , ,

Court Gives Pharmacy Seller Chance to Collect Earnout

Introduction A prospective buyer and seller of a business often can’t agree upon a purchase price. One way to bridge the gap is to break down the purchase price into two pieces. A fixed amount and a contingent amount based

Posted in purchase agreement Tagged with: , ,

Employment Contract Forces Business Seller into Arbitration with Buyer

Introduction A buyer of a business often wants the seller’s owner to stay on after the closing. So, buyer and seller’s owner sign a separate employment agreement at the closing. This is in addition to the deal’s purchase agreement signed

Posted in purchase agreement Tagged with: , ,

Buyer and seller fight over calculation of net income earnout

Introduction Sometimes a seller of a business will agree to take a portion of the purchase price based upon the future performance of the business. This part of the purchase price is called an earnout. The calculation of the earnout

Posted in purchase agreement Tagged with: , , ,

Recent Comments

Categories