Earnouts: A Deal Making Tool In A Tough Economy


Has the difficult economy of the last few years forced you to re-think your plans for selling your business? Probably.

Should you wait for a full-blown economic recovery before seriously considering selling your business? Not necessarily.

Is there a mechanism that can help bridge the gap between the purchase price you were hoping to receive for your business and the lower purchase price you are likely to receive? Absolutely!

An earnout can help you bridge the gap between a buyer's concerns about your business and asking price, on the one hand, and your own certainty about the future performance of your business, on the other.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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