The acquired company should be fully integrated into the acquiring company if an earn-out is used to consummate the transaction.

Question

Quizplus · Accepted Answer

An earn-out does not necessarily require full integration of the acquired company into the acquiring company. It is a financial arrangement where part of the purchase price is paid based on the acquired company's future performance, which can be structured in various ways depending on the agreement between the parties.

The Acquired Company Should Be Fully Integrated into the Acquiring