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Is the concept of "earn outs" linked to future business performance acceptable to sellers as part payment?

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Answers (3)
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Ritch & Associates
Henderson County, NC

Yes it is but the owner will still be looking for something to walk away with. There are many ways to do this with little to no money out of pocket. I would be glad to consult with you if you have a business in mind.

Feb 24, 2010
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How to Buy a Business
WA

Like everything else, it's negotiable. How strong of a case can you make for an earn-out?

Feb 24, 2010
Robert Cutler
Attorney
New York County, NY

It really depends on the type of business, the operating history, the level at which the perfomance goals are set, whether the acquisition is strategic or financial in nature etc. You should consult with your acquisition team to determine what is right for your situation.

Feb 24, 2010

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