The collaboration is now worth up to a potential additional $60 million in combined funding and earn-outs
per company if the company develops marketed products.
The selling shakeholders would be qualified for a cash earn-out
based on a calendar 2015 revenue target; Nearly $548 Mn will be paid at close - $382 Mn in cash and $166 Mn in Harman shares; The number of Harman stocks issued will depend on the volume weighted average trading price 60 days before January 21; The balance of the base acquisition price as well as any further earn-outs
will be paid in cash in Q1 of calendar 2016.
Research tax implications upon selling the business, including "vendor take back" and earn-outs
The caveat to this however, is that acquirers are becoming much more risk aware with transaction structures and are moving significant elements of value to deferred earn-outs
or contingent elements based on future hurdles.
where Equicapita can partner with management and align their interest with Equicapita through tools such as earn-outs
, vendor take backs and management incentive plans;
Ultimately PS52m - with no future earn-outs
for Abertis - was a price the Spanish were happy to sell at and the Welsh Government willing to pay.
In mergers, there are sometimes the earn-outs
and having a cashflow positive operations.
The consideration for this transaction is about US$ 32 million, including escrows and earn-outs
2 million in additional considerations, including seller notes and earn-outs
Contingent consideration, especially in the form of earn-outs
, is an increasingly popular mechanism to address post-transaction performance uncertainties.
And if the past owner is not going to continue working, you can create earn-outs
, consulting contracts, balloon payments, or they can carry the note for a certain number of years.
Area of Specialization: Pre and post acquisition valuations, due diligence and calculation of earn-outs
, including in litiga Certifications/Credentials: MBA, CPA, CVA Website: www.