Opinion forum: company buyouts and the rise of seller credit

Alejandro Alonso Dregi, partner of the commercial area, publishes in the Revista Capital & Corporate an opinion column in which he analyzes the current market for the sale and purchase of companies and the increase in seller-credit as a resource in the face of the current uncertainty.

Our expert analyzes the causes of its boom and its advantages: "It allows to solve tensions in the price because if it is accompanied by an attractive exit earn-out, the price-return equation for the investor is made with a greater prospect of success, and the seller recovers the expected price at the end of the term. Part of the financial cost of the investment is reduced until the seller's exit materializes. The investor gains greater involvement of the seller in the transaction".

But there are drawbacks to seller-credit, which our commercial lawyer warns that, if left unattended, "are likely to become a hotbed of conflict over the next two or three years".

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