Friday, February 3, 2012
The ABA Subcommittee on M&A Market Trends just release their annual Deal Points study. This annual study is a must read for anyone interested in M&A. The Subcommittee has done great work over the years compiling this study. So ... what are you waiting for? Download the 2011 study right now. Given my current interest in earnout provisions, I found the increase in the appearnce of earnouts in private company deals to be a bit of a surprise, especially given the current state of the economy. You'd think that if parties believe that earnout performance may be tied to general economic conditions, you'd expect sellers to eschew them when markets are soft. Apparently, not so. Thirty-eight percent of private company deals in the sample include earnouts. That's a lot.