India:
Designing Earnouts And Working Capital Adjustments In India
12 June 2017
Nishith Desai Associates
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The keenness to get the deal done and defer valuation
discussions to a later stage often results in parties sweeping
latent post-closing disputes under the carpet. However, these
disputes often come back to haunt the deal at a later stage, if not
understood and drafted properly. Disputes relating to valuation and
payment of earnouts and working capital adjustments is an
increasingly common feature in the Indian M&A market, so much
so that earnouts and other deferred consideration strategies are
often termed as 'deferred pre-closing disputes'.
In this issue of Deal Destination titled "Designing
Earnouts and Working Capital Adjustments in India", we
discuss negotiation strategies, the regulatory and tax environment
concerning earn-outs in India and how NOT to draft your earnout/
working capital adjustment provisions. Please click here to read more.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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