Although it’s common for M&A professionals to consider purchase agreement mechanisms - including lock-boxes, earnouts, and other highly negotiated accounting items - as purely an area for risk reduction. We’ve found some of the most sophisticated dealmakers are also using these areas of the purchasing agreement to bridge valuation gaps, incentivize the sellers to perform, and improve financial integration.
As the deal negociations get underwary, it can be very challenging to determine the best closing approach for adjusting...
