Thu, Aug 23, 2012

2012 Contingent Consideration Study

Given the growth in the use of earn-outs as a mechanism for both closing deals and addressing post-transaction performance uncertainties, Duff & Phelps has published its first 2012 Contingent Consideration Study. The study analyzed 120 transactions that included earn-outs and closed between 2009 and 2011. The study:

  • analyzes earn-out structures and durations,
  • compares the magnitude of earn-outs to upfront payments,
  • discusses trends in connection with the fair value of earn-outs and the related impact of valuation updates on earnings volatility, and
  • identifies differences in earn-out structures and valuation by industry.

This study is a must read for anyone contemplating the use of contingent consideration in an acquisition.

2012 Contingent Consideration Study /en/insights/publications/valuation/2012-contingent-consideration-study 2012-08-23T04:00:00.0000000 publication {746781D2-7596-4EA3-BB0D-61CC7AC16C05}{CC4AA7F7-C91B-4C23-A8A9-F85252244AAE}{22071366-6F45-4C04-8261-CDFA24749510}

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