Earn Outs
I recently read a very informative article, written by Doug Robbins, president of Robbinex, Inc., about Earn-outs. Doug, whose company specializes in the sale of mid-sized privately held businesses, addressed these four important topics related to Earn-outs: (i) What is a milestone [when used to determine an Earn-out]?, (ii) What part of the purchase price [is appropriate for an Earn-out]?, (iii) How [is the earn-out] paid?, and (iv) When [is the earn-out] paid?
To read the entire blog, click the title above.
By Tom