KirklandPEN brief: "DisHarmonix" - Dispute Resolution for Earnouts and Price Purchase Adjustments
Parties to an acquisition agreement often focus significant substantive and drafting attention on the well-known challenges of using an earnout to bridge valuation gaps and a purchase price adjustment to protect balance sheet value. A recent Delaware court decision highlights the need for parties also to address carefully related dispute resolution provisions if an earnout or purchase price adjustment dispute later arises. To learn more, see our recent M&A Update.