When buyers and sellers don’t completely see eye-to-eye about future performance – and the purchase price – at closing, contingent consideration can save the day. However, accounting for it is another matter. So join hosts Adam Olsen, Sarah Cage Richter, and Embark resident guru Nicole Harger for a discussion on earnouts, where they cover areas like:

• What is contingent consideration?
• Common types of contingent consideration
• Advantages and disadvantages of earn-outs for buyers and sellers
• Tips and insights on constructing earn-out arrangements
• Classifying and subsequently accounting for earn-outs

For more information on contingent consideration:

• ASC 480, Distinguishing Liabilities from Equity
• ASC 815, Derivatives and Hedging
• ASC 805, Business Combinations

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