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Legal Developments worldwide

Earn‐out clauses: advantages and pitfalls

April 2012 - Corporate & Commercial . Legal Developments by Portolano Colella Cavallo Studio Legale.

More articles by this firm.

The road to a successful acquisition holds a wide variety of challenges for both acquirer and target. A common area of concern arises from the unavailability of private information, which may lead the parties to assess the target's intrinsic value very differently. Bridging the gap between different estimates of the target's value is a fundamental step towards a successful outcome.

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