Earn Out

topic on 3 shows · 3 statements across 3 episodes

Startups For the Rest of Us We Live to Build Top Founders

3 statements about Earn Out, every show

Robles: M&A earn-outs require strictly defined operational controls to avoid buyer interference
“Structuring a deal like that has to be again, very, very defined. And I didn't define it properly. I didn't have the right counsel on it.”
Cecil Robles May 21, 2024 ▶ 17:38 He Still Made Money on the Deal That Cost Him 8 Figures
Tying M&A earn-outs to post-acquisition earnings invites financial manipulation
“The problem with tying an earn out to your earnings is, of course, once you're a division of another company, you lose control over your financials. That gets done by head office. They can oftentimes graft other expenses onto your P&L, head office expenses. It…”
John Warrillow Jan 19, 2021 ▶ 38:11 Episode 532 | The Art of Selling Your Business with John Warrillow
Latka advises against M&A earnouts due to lack of post-sale control
“Some of them were cash and earn out, which means, you know, we get money over a period of time if we hit certain metrics, which I really don't like because I have no control over the business if we sell it.”
Nathan Latka Feb 8, 2016 ▶ 6:51 Nathan Records Negotiation With Seller, Should He Sell Heyo or Not?

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