Using Earnouts & Clawbacks In ESOP Transactions Within The Current Valuation, Capital Markets, & Regulatory Environment
Wednesday, May 1, 2024
11:15 AM – 12:15 PM ET
Location: 120 - 121
Earn 1 CE Hour
CE Type: CLE, CPE
In this session, we will delve into the nuanced world of earnouts, clawbacks, and other forms of contingent consideration, presenting compelling case studies that demonstrate their effective utilization. We'll explore these strategies through the lens of the current valuation landscape, capital market trends, and the prevailing regulatory environment. Our focus will be on achieving a harmonious balance that aligns sellers' expectations with the ESOP's financial capabilities while also ensuring the operational comfort and flexibility of the company and its stakeholders post-transaction. Our discussion will provide valuable insights into how these financial instruments can be strategically employed to bridge gaps between buyer and seller expectations, facilitate smoother transactions, and support the company's long-term sustainability under ESOP ownership. Whether you are a business owner, a financial professional, or an ESOP stakeholder, this session will equip you with a deeper understanding of these complex mechanisms and their potential impact on ESOP transactions.
Learning Objectives:
Describe how contingent consideration can effectively bridge seller and buyer expectations in the current valuation environment.
Understand how earnouts and clawbacks facilitate access to greater leverage in the current capital markets environment.
Understand how earnouts and clawbacks fit into the current regulatory environment.
Nate Dykes, n/a
Vice President & Partner Paralign Capital Partners irvine, CA