Many businesses have been negatively impacted by the pandemic, magnifying the risk of using a “fixed price” for the sale of a company. The gap between what a buyer is willing to pay and what a seller is willing to accept might be more pronounced than ever today. And when a buyer and seller can’t agree on the value of a business. An “earnout formula” is often a practical solution.
While it’s always been a viable arrangement, an earnout agreement might be more relevant than ever today.
To read about “The Business Sale with an Earnout” featured in the June edition of Trusts and Estates Magazine, click below:
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