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.”
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…”