The keenness to get the deal done and defer valuation discussions to a later stage often results in parties sweeping latent post-closing disputes under the carpet. However, these disputes often come back to haunt the deal at a later stage, if not understood and drafted properly. Disputes relating to valuation and payment of earnouts and working capital adjustments is an increasingly common feature in the Indian M&A market, so much so that earnouts and other deferred consideration strategies are often termed as 'deferred pre-closing disputes'.

In this issue of Deal Destination titled "Designing Earnouts and Working Capital Adjustments in India", we discuss negotiation strategies, the regulatory and tax environment concerning earn-outs in India and how NOT to draft your earnout/ working capital adjustment provisions. Please click here to read more.

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