Edward Hamilton, CFA, senior vice president in Valuation Research Corporation’s (VRC) Princeton office was published in Accounting Today with an important overview of the basic accounting, valuation and legal dynamics that should be considered by buyers and sellers when using contingent consideration in the deal structure.
Hamilton advises, “Regardless of which side of the table [buyers and sellers] sit on, those contemplating a deal structure that includes contingent consideration should engage knowledgeable professionals to advise them on all aspects of the transaction.”
VRC continues to see many transactions where contingent consideration has been present. Additionally, deal structures and valuation methods continue to evolve.
A copy of the article is available on the Accounting Today website.