Gordon Rees Scully Mansukhani Partner Craig Heryford, National Chair of the firm’s Business Transactions practice, was recently featured in Smart Business Dealmakers discussing evolving trends in mergers and acquisitions (M&A). In the article, The Rise of Earn Outs, Heryford shared insights on how valuation challenges and market conditions have influenced deal structures, particularly the use of earn outs and rollovers.
Heryford highlighted the creative approaches seen in 2022 and 2023 to bridge valuation gaps, including the use of seller debt, equity rollovers, and earn outs. While some trends have shifted, he noted that rollovers and earn outs remain prominent in today’s market as sellers adapt to evolving buyer expectations and economic pressures.
“Valuations are down, and many sellers are hesitant to go to market when they feel they’re leaving money on the table,” Heryford explained, adding that buyers are placing increased emphasis on downside protection, quality of earnings, and detailed letters of intent to ensure alignment on deal terms.
Heryford’s guidance reflects his deep experience navigating complex business transactions and helping clients achieve successful outcomes in competitive markets.
Read the full article in Smart Business Dealmakers to learn more about these evolving trends.
Learn more about the GRSM Business Transactions practice.