HomeNeutral EvaluationUse casesTransactions & investment
TN/USE/07
Edition 2027 · effective 1 January 2027
Transactions & investment · Earn-out and completion accounts
The deal closed. The number did not.
Before an earn-out becomes a claim, an evaluator reads the agreement and the accounts and gives both sides an independent view. If they want a binding answer, the same question can go to expert determination.
§ 01The evaluation question
What the evaluator is asked.
“Have the earn-out or completion accounts been calculated according to the agreement?”
(The question)
Commissioned by. Buyer and seller together
When. When the statement is issued or disputed
Usual protocol. B · Single-commissioner decision review
§ 02What is examined
The evidence, and the output.
The evidence
Material reviewed, and what was not available, is always stated.
- The agreement’s definitions and policies
- Accounting choices made
- Management actions affecting the result
- The calculation itself
A view of the correct figure and the drivers of any gap
A reasoned view. The decision stays with you.
- It will not: a binding decision, unless the parties choose determination
§ 03Depth and time
Usually: Early Neutral Evaluation.
An independent view of the merits of a difference. Typical time: Two to four weeks.
§ 04Your version
Every case is different. Frame yours.
§ 05Related