Latest / The 7 Minute Takeover
The 7-Minute Takeover S2 Ep.18: ETA Earnouts: Smart Strategy or Risky Move?
Struggling to agree on price when buying a business?An earnout is one of the most common ways buyers and sellers bridge valuation gaps, but it’s also one of the most misunderstood.In this video, we break down what an earnout is, when it makes sense, and the risks buyers need to understand before using one in a deal.We cover:• What an earnout actually is (and how it works)• Why it’s considered both deferred and contingent financing• When earnouts make sense — especially in high-growth businesses• How buyers use earnouts when lenders won’t finance future projections• How lenders view earnouts…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.