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    Mergers Acquisitions Study Set 1
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    Exam 11: Structuring the Deal:
  5. Question
    Earnouts Tend to Shift Risk from the Seller to the Acquirer
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Earnouts Tend to Shift Risk from the Seller to the Acquirer

Question 70

Question 70

True/False

Earnouts tend to shift risk from the seller to the acquirer in that a higher price is paid only when the seller or acquired firm has met or exceeded certain performance criteria. True of False

Correct Answer:

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