Small business need-to-know and news-to-watch M&A.
Excerpt…….The recovering, but still uncertain, economy and real estate markets have led to diverging opinions and concerns over the future value of a target’s assets which might otherwise prevent agreement on transaction pricing. As discussed in prior memos, contingent consideration structures have for years been used to bridge differences between buyers and sellers in uncertain times. With the burgeoning trend of increased M&A activity involving smaller banks, it is important to remember that these structures, while requiring careful thought, can be useful in both small and large deals alike to creatively address pricing challenges
Read full article……via Contingent Consideration in Bridging Valuation Gaps — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
