Earn-Outs: Mitigating Risk and Bridging Value Expectations in M&A

Taisia Nistorenco ()
Additional contact information
Taisia Nistorenco: University of Economics, Prague

A chapter in Global Versus Local Perspectives on Finance and Accounting, 2019, pp 361-372 from Springer

Abstract: Abstract This article explains what problems dealmakers face when valuing companies and how can contingent payment instruments (such as earn-outs) facilitate them in this task. It provides an analysis of economic and business specifications of earn-outs and demonstrates on a sample of 48 transactions that the use of earn-outs is influenced by the characteristics of the target’s industry and market.

Keywords: M&A; Valuation; Earn-out; Contingent payment (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-11851-8_34

Ordering information: This item can be ordered from
http://www.springer.com/9783030118518

DOI: 10.1007/978-3-030-11851-8_34

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().