Small business need-to-know and of-interest.
Excerpt: We have written before of certain pitfalls that await dealmakers utilizing earnouts and purchase price adjustments. An oft-shared aspect of those two deal provisions was the subject of a recent Delaware decision by Chancellor Strine — the employment of an independent accountant to resolve post-closing disputes between the parties. The outcome, while hardly surprising, offers some timely reminders of some of the hazards presented by this popular dispute resolution mechanism.
Read full article via Dispute Resolution for Earnouts and Purchase Price Adjustments — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
