The earn-out dispute begins at the drafting stage
Most earn-out arguments are not about performance. They are about who controls the business during the earn-out period, and what the accounts are permitted to say.
Most earn-out arguments are not about performance. They are about who controls the business during the earn-out period, and what the accounts are permitted to say.
Seat, institution, language and scope get settled in a clause nobody negotiates. The consequences arrive years later, usually at the enforcement stage.
Ownership gaps and freedom-to-operate risk rarely stop a deal. They move the price, the warranty package and the indemnity cap — if they are quantified in time.
Aggregate caps, carve-outs, and the distinction between direct and consequential loss. Three drafting decisions that determine what a contractual breach actually costs.
Assignment does not happen automatically, and in several jurisdictions it does not happen at all without writing. A checklist for founders reviewing what the company actually owns.
Floating charges, after-acquired assets, and cross-border perfection. Where enforcement most often runs into a gap that was there from the start.
Enforceability turns on scope, duration and legitimate interest — and on how quickly the employer moved. A note on the first week after resignations land.
Applications fail on risk of dissipation far more often than on the merits of the underlying claim. What the affidavit has to establish, and when to seek it.
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