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Jonathan Handler and Jillian Hirsch Discuss Trends in Earn-Out Clauses in M&A Lawyer

August 14, 2014
Day Pitney Author(s) Jonathan I. Handler

Thomson Reuters published an article co-authored by Jonathan Handler and Jillian Hirsch titled "Developments in the World of Earn-Outs" in the July/August 2014 issue of M&A Lawyer. The authors explain how the conflicting goals of buyers and sellers are difficult to reconcile in the drafting of earn-out clauses and how they have become a major source of friction and have led to litigation. They discuss some illustrative cases to highlight key issues, flag emerging issues in this area and offer suggestions for how both sides can mitigate risks and avoid future disagreements.