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    Mergers Acquisitions Study Set 1
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    Exam 11: Structuring the Deal:
  5. Question
    Earn-Outs Tend to Shift Risk from the Seller to the Buyer
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Earn-Outs Tend to Shift Risk from the Seller to the Buyer

Question 12

Question 12

True/False

Earn-outs tend to shift risk from the seller to the buyer in that a higher price is paid only when the seller has met or exceeded certain performance criteria.

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