Join Brett Hickey of Star Mountain Capital, Shaun Maloney of EisnerAmper and myself for a BVR webinar on Case Studies in Contingent Consideration.
Brett will provide useful insights on how earnouts and clawbacks are being negotiated in current M&A transactions. Shaun and I will present some case studies in how to value contingent consideration using OPM modelling and Monte Carlo Simulation.
We expect a practical and hopefully interesting discussion. Thank you to BVR for the opportunity to present on this challenging topic.
A significant component of the transaction price in an M&A or buyout transaction often consists of proceeds that are “contingent” upon the target company’s achievement of certain performance targets after the closing has taken place. From the perspective of the seller, “contingent consideration” represents the right to receive additional assets or equity interests from the buyer (earnout), or the obligation to return part of the proceeds from the transactions (clawback) if specified future events occur or conditions are met.