Monetization refers to the conversion of an investment into cash which usually happens via a liquidity event. When investors such as venture capital or private equity firms invest in a private company, they expect to get their money back plus a specified return within a certain period of time. The investee may flow some cash out via dividends, but... Read more
Takeaway:Earnouts are difficult legal clauses to manage and can often lead to misunderstanding and difficulty realizing them. Here is a practical example of some of the pitfalls that sellers should watch for.
Tags: Sale ProcessDue DiligencePreparationEarnoutsPurchase and Sale AgreementExit Strategy Related Terms: EarnoutSPAPurchase Price
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Peter's practice focuses on mergers and acquisitions (M&A), banking, general business, and business succession law. Peter works to partner with his clients and commits to understanding their legal needs and providing great client service. Full Bio
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