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Thomson Reuters published an article co-authored by Jonathan Handler and Jillian Hirsch titled "Developments in the World of Earn-Outs" in the July/August 2014 issue of M&A Lawyer. The authors explain how the conflicting goals of buyers and sellers are difficult to reconcile in the drafting of earn-out clauses and how they have become a major source of friction and have led to litigation. They discuss some illustrative cases to highlight key issues, flag emerging issues in this area and offer suggestions for how both sides can mitigate risks and avoid future disagreements.
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This website may use cookies, pixel tags and other passive tracking technologies, including Google Analytics, to improve functionality and performance. For more information, see our Privacy Policy. By using our website, you are consenting to our use of these tracking technologies. You can alter the configuration of your browser to refuse to accept cookies, but if you do so, it is possible that some areas of web sites that use cookies will not function properly when you view them. To learn more about how to delete and manage cookies, refer to the support instructions for each browser (e.g., see AllAboutCookies.org). You may locate Google Analytics' currently available opt-outs for the web here.