Surviving an Earnout Provision in a Business Sale
Earnout sales are becoming more common, especially in high-growth companies, those with unproven products, and situations when the buyer and seller disagree on valuation issues. By some estimates, up to half of small business sales involve earnout provisions lasting two to five years, and involving 15 to 50 percent of the purchase price. What are earnout provisions based on? Keep reading and learn about five dangers to avoid.