The Wednesday afternoon sessions of the corporate development track here at ACG InterGrowth in Vegas were about corp dev pros and a few advisers sharing experiences. But along with outlining a number of timeless best practices, they also gave some insight into how deals are getting done in the current harsh climate.
Here's one: Use of earnouts in paying for acquisitions is on the rise, says Hendrik Jordaan, partner at Holme Roberts & Owen LLP. Jordaan predicts an increase in litigation over these contingent payments in the next few years, and says that the buyers and sellers who are using them are positioning themselves for possible legal fights down the road.
Other ways of conserving cash while still meeting strategic objectives, such as forming JVs and alliances, are also on the rise, the attendees concurred.
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Kenneth Klee
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