How have Acquisition Agreements evolved, and what’s next?
Mergers and acquisitions have faced a slowdown in early 2024, prompting companies to explore new ways to secure deals. One growing trend is the use of earnouts – where additional payments depend on the acquired company meeting specific post-acquisition targets.
Amanda Nilsson, Application Consultant at AARO, explores this topic in her latest article, highlighting key accounting implications under IFRS 3.
Are earnouts part of the business combination, affecting goodwill? Or are they considered post-acquisition compensation? The classification impacts financial reporting, and IFRS 3 provides guidelines to assess this—especially when employees or selling shareholders are involved.
Read the full article by Amanda Nilsson, and gain insights into earnouts and their role in today’s M&A landscape.
