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PLAYBOOK TEMPLATES

Settlement & Mutual Release Agreement

A Settlement & Mutual Release Agreement resolves disputes and releases parties from future claims. This playbook outlines negotiation of consideration, confidentiality, and release scope.

Post-Closing Covenants & Deliverables

Why This Matters: Clear post-closing covenants and deliverables ensure timely fulfillment of obligations and provide remedies for non-compliance. This reduces integration risk and potential post-deal disputes.

Negotiation strategy

If you're the Party A:

Ensure all post-closing obligations are clearly defined with specific timelines and responsibilities. Collaborate with the Seller to develop a comprehensive integration plan.

If you're the Party B:

Prepare all necessary documentation and reports in advance to ensure timely delivery post-closing. Negotiate earn-out conditions that are achievable and aligned with business performance.

Essential elements

1

Operational Integration Plan

Steps for business integration.
2

Earn-Out Payment Conditions

Performance targets for earn-out.
3

Post-Closing Reporting Obligations

Monthly operational and financial reports.

Action framework

ACCEPT

Propose edits if timelines or responsibilities are unclear.

EDIT

Reject if obligations are overly burdensome or vague.

ADD

Add clauses if key deliverables are missing.

PRO TIP

Regularly review post-closing obligations to ensure compliance and address any issues promptly.

Example clauses

FAVORABLE

Operational Integration Plan

"Within thirty (30) days following the Closing Date, the Buyer and Seller shall collaboratively develop and implement an Operational Integration Plan..."
NEUTRAL

Earn-Out Payment Conditions

"The Earn-Out Payment shall be contingent upon the acquired business achieving the specified performance targets..."
UNFAVORABLE

Post-Closing Documentation

"Within sixty (60) days after the Closing Date, the Seller shall deliver to the Buyer all necessary documentation..."

Fallbacks

High-Risk Projects

In high-risk projects, ensure post-closing covenants include detailed risk mitigation strategies and contingency plans.

Cross-Border Transactions

For cross-border deals, consider additional regulatory compliance and cultural integration factors in post-closing obligations.

Technology Acquisitions

In technology acquisitions, emphasize the transfer of intellectual property and technical documentation as part of post-closing deliverables.
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