TRUE UP FOR TAX INCREASES?

Sellers have asked for a true up in the purchase price if the pending tax increases are passed (during the diligence period). Has anyone else experienced this? Thoughts? It's an increase of 5% of the current pay portion and 8% of the earn-out, assuming the current proposals hold.

I know they're considering an ESOP as their second alternative, which is tax advantaged.

Thank you.



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