Earn out | Use of options, warrants and swaps

When selling a founding business, there is often a discrepancy between the seller's price expectations and the buyer's willingness to pay. This article describes three mechanisms that use options, warrants and swaps to build a bridge between buyer and seller.

In Friday’s article in Finansavisen, lawyer Hans Kristian Nygaard addresses earn out, use of options, warrants and swaps. He deals with various mechanisms for solving a potential dead-lock situation when selling and buying a company on the basis of the seller’s price expectations and the buyer’s willingness to pay.

Topics in the article include seller credit, reinvestment and the use of intangible assets.

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