Litigation risk outlook for 2024
Disputes are on the rise. As organizations look to manage uncertainty in the face of ongoing economic and geopolitical headwinds, Torys’ litigators explore hot spots of litigation risk across areas of practice and industry.
While an earn-out provision can be a useful tool to bridge a valuation gap and facilitate closing, it often gives rise to litigation. To mitigate risk, counsel should expressly detail parties’ mutual understanding about the earn-out.
— Managing earn-out provision litigation risk: avoiding common pitfalls

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