How Do Earnouts Work When You Sell a Business? | Jesse Welch, MidCap Global
How do earnouts work when you sell a business to private equity? Jesse Welch, Founder & CEO at MidCap Global, explains why buyers use earnouts to bridge a valuation gap and the three purchase agreement terms sellers should check: the metric, how it is defined and calculated, and who controls how the business is run.
About Jesse Welch: Jesse Welch is the founder of MidCap Global, a capital advisory and investment banking firm that advises on selling, buying and financing businesses. He also hosts Capital Love Letters, where he reads real deal documents on camera and shows which clauses decide…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.