Purchase Agreement: Earn-Out with EBITDA Targets | Practical Law

Purchase Agreement: Earn-Out with EBITDA Targets | Practical Law

This Standard Clause provides for contingent earn-out payments after the closing that become payable to the seller if the target company or business in an acquisition achieves specified annual EBITDA targets. It can be used in connection with a private stock purchase, asset purchase, or merger. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

Purchase Agreement: Earn-Out with EBITDA Targets

Practical Law Standard Clauses 2-501-7344 (Approx. 27 pages)

Purchase Agreement: Earn-Out with EBITDA Targets

by Practical Law Corporate & Securities
Maintained • USA (National/Federal)
This Standard Clause provides for contingent earn-out payments after the closing that become payable to the seller if the target company or business in an acquisition achieves specified annual EBITDA targets. It can be used in connection with a private stock purchase, asset purchase, or merger. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.