Earnout Trends: Tax Considerations in Reverse Earnouts

By | Canadian M&A Law | September 29, 2014
Earnout Trends: Tax Considerations in Reverse Earnouts

One of the most difficult questions to come up at the negotiating table is also one of the most fundamental: “What is it worth?” To bridge the almost inevitable vendor-purchaser valuation gap, parties to an M&A transaction will often agree to tie part of the purchase price to some measure of post-closing business success.