Multiple accretion occurs when a public company acquires another company at a lower valuation multiple than the buyer's own public valuation multiple. The result of multiple accretion is that, immediately following the acquisition, the earnings of the acquired company are valued by the market at the higher multiple of the acquiring public company....
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.
Purchase and Sale Agreement
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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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