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섭외 주요 사례

Practice review: earn-out and performance disputes in cross-border M&A

Vague earn-out wording easily turns into protracted post-closing disputes.

A typical scenario: a cross-border deal includes a performance earn-out, and after closing the parties dispute the compensation amount over performance metrics, accounting, or operational control.

Earn-out disputes often stem from unclear terms on 'how performance is calculated and who controls operations'.

The lesson: write performance definitions, accounting standards, intervention boundaries, and dispute mechanisms clearly, and consider escrow and other risk mitigants.

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