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What Really Causes Post-Closing M&A Disputes
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Subscribe14 SEP 2026 / EXPERT INSIGHTS
Mergers and acquisitions (M&A) disputes frequently arise due to differing interpretations of the deal by both parties, rather than a lack of understanding. Several factors, such as working capital true-ups, debt-like items, and earnouts, can change the final payment received by the seller and paid by the buyer. The interpretation of "normal" working capital can also cause disagreements, as various factors can make this figure differ from the business' actual requirements. Additionally, disputes can arise over mechanisms like earnouts, which link part of the payment to future performance of the company. Clear and precise rules need to be established in the purchase agreement to prevent post-closing disagreements.
The cleanest M&A dispute is the one that never gets started. That sounds obvious, but plenty of transactions are negotiated as if signing the purchase agreement settles every meaningful economic question. It does not. Once the champagne is gone and co...
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