Merger & Acquisition Lawsuits Q&A with Palm Beach’s Ben Gordon

  1. Clearly define the business issues in advance. You can’t just rely on lawyers. No matter how good they are, lawyers take their cues from their clients. Do you expect any challenges with respect to earn-outs? Are you particularly concerned about being free to invest in other companies? As an owner, you need to address these issues upfront.
  2. Follow Occam’s razor, and keep it simple. If you have an earn-out, try to base it on unobjectionable criteria. Revenue is better than EBITDA. One year is better than two years. If the earn-out is based on earnings, then an agreement on cost accounting is a must.
  3. And above all, pick business partners based on trust. No amount of legal protection can substitute for doing business with ethical partners that you like and trust.

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Benjamin Gordon

Benjamin Gordon

Ben Gordon, CEO of Cambridge Capital and BGSA. Investor in logistics and supply chain technology. Published at Fortune and CNBC. http://bengordonpalmbeach.com/