This is a follow-up to an earlier post on earnouts in M&A deals. I’ve embedded below a detailed presentation on earnouts I prepared last year. It is intended to serve as a stand-alone document that does not require any verbal commentary. Topics include: An introduction to earnouts Determining whether to use an earnout How to measure […]
Tag Archives: Purchase Price
Introduction to M&A Earnouts
M&A earnouts can help you get deals done . . . but not without risk. An earnout is a deal financing mechanism where the buyer agrees to make future payments to the seller if certain agreed-upon financial or operating targets are reached after closing. The future payments are usually in addition to amounts paid at closing and […]