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Closely Held Businesses Earn-Outs

DarrowEverett LLP

The Earnout Equation: Tax Tips for Both Buyers and Sellers

DarrowEverett LLP on

Earnouts are a form of contingent consideration that the buyer of a business pays to the seller in the period following the acquisition, based on the business achieving various financial metrics related to its performance...more

Rivkin Radler LLP

Tax Increases Are In Sight

Rivkin Radler LLP on

Summertime in Washington- On August 11, the Senate passed the $3.5 trillion budget resolution for the 2021-2022 fiscal year – S. Con. Res. 14, as amended – by a vote of 50 to 49, strictly along party lines, including...more

Smith Anderson

Taxing the Earnout

Smith Anderson on

Agreements for the sale of privately-held companies often call for part of the purchase price to be paid in the form of an earnout. The earnout provision requires the buyer to pay an additional amount in purchase price after...more

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