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M&A Earnouts in Cross-Border Indian Transactions
Earnouts are increasingly common in India-inbound M&A — but FEMA pricing guidelines complicate the math.
Earnouts let buyers and sellers bridge valuation gaps, but India’s pricing guidelines under FEMA require careful drafting to avoid post-closing regulatory exposure.
We unpack acceptable formulations, escrow mechanics, and recent RBI clarifications that have changed market practice in 2025–26.