Performance based earnouts can maximize the business sale value. Here are 5 benefits and 5 downsides to earnout structures…

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How to Sell a Business: Maximize Business Sale Value with Performance Based Earnouts

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.

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– Maximize the Sale Price (and retain part ownership for free!)
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