- Tytuł:
- Earn-outs to bridge gap between negotiation parties – curse or blessing?
- Autorzy:
-
Toll, Ch.
Rolinck, J.-P. - Powiązania:
- https://bibliotekanauki.pl/articles/108376.pdf
- Data publikacji:
- 2017
- Wydawca:
- Akademia Górniczo-Hutnicza im. Stanisława Staszica w Krakowie. Wydawnictwo AGH
- Tematy:
-
mergers and acquisitions
asymmetric information problem
earn-out - Opis:
- An agreement upon the terms of company transactions is aggravated by the existence of differ-ent information levels concerning the negotiation parties; this can be seen as a basic cause for divergent price expectations. Hence, the question is how the existing differences in price expectations of the transaction parties can be handled to reach a consensus, even when there is no area of agreement in the initial round of negotiations. Earn-outs are an interesting approach in overcoming divergent price expectations by making the purchase price dependent on the future performance of the company. However, formulating and implementing earn-outs may have a substantial potential for conflict. The present contribution shows which advantages and disadvantages the transaction parties face if an agreement regarding earn-outs is made.
- Źródło:
-
Managerial Economics; 2017, 18, 1; 103-116
1898-1143 - Pojawia się w:
- Managerial Economics
- Dostawca treści:
- Biblioteka Nauki
Artykuł