The Mitigation of Asymmetric Information through the Use of Earnouts
We examine the use of a contracting method in mergers and acquisitions known as an earnout. In this type of transaction, the bidder agrees to pay the target an initial amount for the acquisition plus future payments contingent on the achievement of performance milestones. Theory suggests that the co...
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| Format: | Others |
| Language: | en |
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LSU
2004
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| Online Access: | http://etd.lsu.edu/docs/available/etd-06172004-091346/ |