Earnouts can play a critical role in bringing buyers and sellers to the finish line, but they come with risks to consider in purchase agreements and other contracts.

In this video, Torys litigators Gillian Dingle and Alexandra Shelley take questions from moderator Andrew Bernstein on the effective use of earnouts and issues to consider when negotiating agreements.

We discuss:

  • how earnout provisions work
  • why people use earnouts
  • why earnout disputes happen
  • how to stop earnout disputes before they start
  • how earnout disputes are resolved

Click here to see other videos in this series.

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.