Valuation uncertainty is the gap between what a buyer pays now and what the business proves to be worth later, and it is where earn-outs and post-close price adjustments turn into disputes. Earn-outs bridge disagreement on value but create misaligned incentives; completion accounts and locked-box mechanisms allocate risk on working capital and debt. Boards care because these mechanics decide who bears the downside if forecasts miss. This research note covers how valuation and adjustment disputes arise in your chosen jurisdiction and industry, a framework for choosing and drafting mechanisms, scenarios in which earn-outs sour, the warning indicators of a contentious measurement period, realistic impact ranges, and mitigation, with guidance on when to engage deal counsel and valuation experts. It is research, not legal or valuation advice.
Reference material for informed readers, not advice.
