Intangible Risks Directly Impact Exit & Earn Out
8 figure impact on investors, 7 figure impact on earn out
The Situation
- A high growth company, but the management team ignored intangible asset risk.
- The company was sold to a listed US corporate for $100M+, with the Management Team on earn-out and warranties contracts.
The Client
$100M+ Hardware Company
Outcome
- The company was sued three times in the four weeks following acquisition
- The new owner enforced warranties against the management team.
Result
8 figure impact on investors, 7 figure impact on earn out