Foley & Lardner LLP Partners Louis Lehot, Brandee Diamond, and Omar Lucia authored the Westlaw article, “Mergers and acquisitions: bridging gaps in expectations and resources in 2023.”
The authors explore the topics of earnouts and seller financing, two avenues that are making a comeback as popular choices to help close deals amid the current economic pressures creating gaps on valuation issues.
“Despite the challenges, earnouts and seller notes are tools at the disposal of private equity buyers that help to close deals, in particular in shaky markets. Buyers and sellers alike need to consider both pros and cons of these tools carefully and align them with their risk tolerance ensuring that the transaction is structured in a way that results in the best possible outcome,” they conclude.