What's Market: Earn-outs in Australian M&A
8 May 2026
Earn‑outs are increasingly being used in Australian M&A transactions as buyers have more frequently sought to defer and reallocate valuation and performance risk to sellers amidst changes to broader global macroeconomic conditions.
Our latest 'What's Market?' briefing examines the current state of play on deployment of earn‑outs in Australian private M&A. Drawing on recent transactions and disputes experience, it explores key benefits and challenges, emerging trends, current market practices, and practical lessons for dealmakers to minimise the risk of unintended consequences and post‑transaction disputes.
Please find other recent 'What's Markets?' papers in the series below:
- Major Shareholder Involvement for Take-Private Transactions
- W&I Insurance in Australia
- Standstill Restrictions in Take-Private Transactions
