Market leading insight for tax experts
View online issue

Earn-Outs — Where Are We?

Elizabeth Robertson and Richard Holme, Creaseys, Tunbridge Wells, highlight the problems of earn-outs for the OMB sector

 
Elizabeth Robertson and Richard Holme Creaseys Tunbridge Wells highlight the problems of earn-outs for the OMB sector
 
Finance Act 2003 has added more complexity to the taxation of earn-outs which continue nevertheless to be popular in the current economic climate.
 
Although some OMB vendors are offered consideration for their shares entirely in cash the majority of the deals we see in practice involve at least an element of earn-out and sometimes there is no 'up-front' cash consideration at all. The commercial rationale varies but to quote a recent view from Meta Corporate Finance:
 
'Whilst corporate financiers tend to present businesses for sale on a...

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top