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Earnout structures: Bridging valuation gaps in M&A – beware the tax complexity

JD Supra: Mergers

In brief Our recent Private M&A Report highlights a rise in the use of earnout and contingent consideration structures in private M&A transactions as parties seek to bridge valuation gaps. There are a number of tax pitfalls that can arise for the unwary when using earnout structures.

M&A
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Deal Flow Thawing: Is the M&A Market Finally Finding Its Footing?

JD Supra: Mergers

For much of the past year, there have been mismatched expectations around valuations and limited access to capital that have caused activity to stall. According to a recent report by PwC Global, “lending rates have long been one of the two key factors influencing M&A activity, the other being valuations.”. By: Offit Kurman

M&A
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Stay away from these two big U.S. banks as valuations grow stretched, Baird says

CNBC: Investing

banks as valuations grow stretched, Baird says Published Fri, Jun 27 2025 8:48 AM EDT Updated Fri, Jun 27 2025 12:08 PM EDT Sean Conlon @SeanAustin96 WATCH LIVE The recent rally in shares of JPMorgan and Bank of America may soon reverse, according to Baird. " Both U.S. banks have outperformed the S & P 500 in 2025.

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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Due diligence and valuation are critical to any successful merger and acquisition (M&A) deal. Valuation: Determining the Fair Valu e Valuation is the process of determining a company’s fair market value. Accurate valuation is essential for successful M&A deals.

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Bank of America downgrades hot IPO and Nvidia derivative CoreWeave, citing valuation

CNBC: Investing

The firm downgraded CoreWeave to neutral from buy on Monday, but increased its price target to $185 per share from $76, which suggests shares could rise 26% from Friday's $147.19 CoreWeave's $1.5 billion initial public offering raise marked the largest tech offering on Wall Street since 2021.

IPO
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What Does It Take to Close a Deal? Jordan Wagner's Multi-Million Dollar Deal Secrets EXPOSED

How2Exit

Consistent Growth : Premium valuations in company sales hinge on predictable revenue and growth, amid a booming market. E257: What Does It Take to Close a Deal? Deal Variety : Majority buyouts are common, with business owners having the opportunity to retain equity and benefit from future growth.

IT
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Can You Supercharge Your Business Growth? The Roll-Up Strategy REVEALED

How2Exit

Integrating talent and aligning interests across multiple acquisitions magnifies operational efficiencies, improving prospectives for valuation bumps. Roll-ups involve acquiring multiple small companies within the same industry and integrating them to form a larger operation, thus enhancing scalability and market valuation.