Requiring all your money up front doesn’t always get you the best overall outcome when selling your business. To maximize the outcome, it often helps to agree to a performance based earnout.
Many business sale transactions are structured with earnout provisions, particularly in the mid-size business market. There are many reasons why building in an earnout structure might be mutually beneficial.
In this video we’ll explain what an earnout is and run through the 5 main benefits of having an earnout structure as well as 5 potential downsides you should consider.
Director, Tony Brown, helps a global audience of Business Owners and Investors understand the in’s and out’s of business sale transactions, and how to prepare themselves and their businesses for the most important transaction in their business lives; through TonyBrown.net.
The video can be viewed here: https://tonybrown.net/how-to-sell-a-business-maximize-business-sale-value-with-performance-based-earnouts/
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