Being Prepared For Post-Transaction Disputes

Law360, New York (July 25, 2011, 2:38 PM EDT) -- Transactions are rarely over when the closing is complete. The deal often contains one or more post-transaction steps. These could be related to the purchase price in the form of earn-out payments or buy-out payments, or some sort of adjustment, such as a working capital adjustment.

Often, disputes over these post-transaction steps are governed by alternative dispute resolution clauses in the deal documents. Most often, an agreement to arbitrate before an accounting firm or other agreed body.

However, with the focus on finalizing and closing the...
To view the full article, register now.