News & Analysis as of

Canada Earn-Outs

Bennett Jones LLP

ONSC Denies Claim for Acceleration of Earn-Out Payment

Bennett Jones LLP on

The Ontario Superior Court of Justice recently released its decision in Project Freeway Inc. v ABC Technologies Inc. (2025 ONSC 1048), addressing whether certain post-closing transactions triggered the acceleration of an...more

Stikeman Elliott LLP

Recent Québec Court of Appeal Decision Highlights the Importance of Clear Drafting for Earnouts

Stikeman Elliott LLP on

Ambiguous drafting of earnout provisions in M&A agreements is a perennial source of post-closing disputes. What may have seemed clear to parties in the heat of negotiations can often become less so as time passes,...more

Blake, Cassels & Graydon LLP

Mieux comprendre les clauses d’indexation

Lorsque les vendeurs et les acheteurs d’une entreprise privée sont sur le point de conclure une opération, mais peinent toujours à s’entendre sur le prix d’achat de la société cible, il arrive souvent qu’ils envisagent alors...more

Blake, Cassels & Graydon LLP

Don’t Burn Out: Earn Out

When sellers and buyers of a private business are close to a deal but cannot agree on the purchase price for the target company, they often turn to earnouts. Simply put, earnouts are contractual provisions stipulating that a...more

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