THE EARN-OUT: A Useful Tool In M&A Transactions for ...

An earn-out can act as a retention device, holding seller-managers in place in a positive way, in a manner in which employment and/or consulting agreements often cannot. Also, earn-outs can often be internally financed. ... and the method of accounting for profits, losses and expenses. ... Partner. Manatt, Phelps & Phillips, LLP. ................
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