Features & Analysis

Deferred consideration and earn-out: what to consider for buyers and sellers

Nigel Hoyle, head of Corporate law at Blacks Solicitors, discusses what the buyers and sellers of companies need to be aware of when it comes to deferred consideration and earn-out.

Deferred consideration

When selling a company, it is not always the case that you will receive the full purchase price that you have agreed for your shares on the day you complete. Quite often, buyers will structure offers in a way that includes an initial payment followed by periodic payments thereafter.

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