TY  - JOUR
U1  - Wissenschaftlicher Artikel
A1  - Dahlen, Niklas
A1  - Lahmann, Alexander
A1  - Schreiter, Maximilian
T1  - Panacea for M&A dealmaking?
BT  - Investor perceptions of earnouts
JF  - Finance research letters
N2  - We survey 129 investors from private equity firms, investment banks, corporate M&A and other M&A-related roles about their perception of earnouts. The results indicate that earnouts are applied to reduce information asymmetries and to bridge negative agreement zones in transactions. While these findings are largely aligned with the academic perspectives, we reveal several discrepancies to existing theory with respect to motives, valuation and associated costs. This is the first study that incorporates the view of M&A professionals and thus attempts to bridge the gap between academics and professionals. In addition, it provides impulses for further academic work on earnouts.
KW  - Earnout
KW  - Contingent payments
KW  - Contingent claims
KW  - Survey
KW  - Mergers and acquisitions
Y1  - 2023
SN  - 1544-6123
SS  - 1544-6123
U6  - https://doi.org/10.1016/j.frl.2023.104850
DO  - https://doi.org/10.1016/j.frl.2023.104850
VL  - 60
IS  - February 2024
SP  - 11
S1  - 11
ER  -