You are an investment banker for Company A who is buying Company C. During due diligence you discover that there is litigation between Company C and one of its competitors regarding one of Company C's patents. You discuss the matter with your client Company A and they decide that they still want to buy Company C but do not want to be exposed to the patent litigation. In order to move forward you institute a holdback of a portion of the purchase price which is equal to the amount of the potential damages associated with the litigation. Is this a good approach for Company A ? Yes, Company A still gets to buy Company C and does not have to pay for the litigation. No, Company A's purchase price will increase