Essay
In mid-2008, Fresenius, a German manufacturer of dialysis equipment, acquired APP Pharmaceuticals for $4.6 billion. The deal includes an earn-out, under which Fresenius will pay as much as $970 million, if APP reaches certain future financial targets. What is the purpose of the earn-out? How does it affect the buyer and seller?
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An earn-out may have been used to bridge...View Answer
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