Deal Structuring

Deferred Consideration

Purchase price paid in tranches over time rather than fully at closing, used as structural leverage independent of performance milestones.

Buyer Example

Buyer structures a ₹30 Cr acquisition of a Jaipur handicrafts export house as ₹20 Cr at closing and ₹10 Cr deferred over 12 months, using the deferred tranche as a practical offset mechanism against any post-closing indemnity claim without needing to initiate separate recovery litigation.

Related terms in Deal Structuring & Commercial Terms