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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. By: Herbert Smith Freehills Kramer

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

CNBC: Investing

My Portfolio Livestream Full Episodes Stock Screener Market Forecast Options Investing Chart Investing Stock Lists Subscribe Sign In Livestream Menu Make It select USA INTL Livestream Search quotes, news & videos Livestream Watchlist SIGN IN Markets Business Investing Tech Politics Video Watchlist Investing Club PRO Livestream Menu Bank of America (..)

IPO
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Navigating Earn-Out Disputes: Key Considerations for Private Funds

JD Supra: Mergers

Times of economic volatility often increase disparities between a seller’s valuation and the buyer’s valuation of the same company. Earn-out provisions are one tool frequently used to address such disparities.

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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.