This technical note provides students with earnouts and other forms of incentive payments in the context of mergers and acquisitions. The note describes the use of incentive payments in M & A, recent transactions, which used earnouts, trends and volumes earnout transactions, the advantages and disadvantages of earnout structures. Most concepts in the evaluation of earnouts is their similarity to the options. This approach provides a conceptual framework for considering how earnout can best be structured, and how the cost can be estimated. The note concludes common example of assessment and refers the reader to the table model, which can serve as a template for future assessments earnouts.
This Darden study. "Hide
by Robert F. Bruner, Scott Stiegler 21 pages. Publication Date: December 12, 2000. Prod. #: UV0465-PDF-ENG
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