Earn-Outs: Bridging the Gap Between Cautious Buyers and Eager Sellers

In this episode, Anna Tang, Kimberly Kamkar and Doug Schwartz delve into the dynamics of sales transactions, especially in the context of the current economic climate. They discuss the challenge of aligning the price expectations of sellers with the more cautious approach of buyers. This episode highlights the economic conditions contributing to the gap, particularly the lingering effects of the active M&A market in 2021 and ongoing uncertainty due to tariffs and high interest rates. And of course, Anna, Doug and Kimberly propose language and other drafting tools to bridge the gap between the parties and manage post-closing disputes.