Making Earnouts Pay

(Earn-outs and Contingent Payments)The Firm provides accounting and financial analysis to support clients and their counsel in determining the amount of earn outs and contingent payments. Janas Associates sold a client company for $12 million of which $3 million was earn-out. The buyer subsequently took the position that $1 million earn out was not due. Janas prepared documentation to support the client’s position. Legal counsel and Janas worked together to seek payment. An amount of $2 million has been collected with an unresolved balance of $750,000 in arbitration.

 

 


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