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Where do disputes most often arise in an earn-out (earnings-based consideration) structure?

Ambiguity in the target metrics and the seller's exclusion from management are the most frequent sources. We define the metrics in auditable terms and set out the calculation and dispute-re…

Updated · July 20261 min readCategory · Focus Areas
Short answer

The ambiguity of the target metrics and the seller's exclusion from management are the most frequent sources. We define the metrics in an auditable way and set out the calculation and dispute-resolution mechanism clearly in the contract.

Ambiguity in the target metrics and the seller’s exclusion from management are the most frequent sources. We define the metrics in auditable terms and set out the calculation and dispute-resolution mechanism explicitly in the contract.

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