Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
Why Earnouts Are the New Debt Trap for Sellers
We look at why modern M&A deals increasingly use earnouts to bridge valuation gaps, turning potential upside into a high-risk liability. Lucas and Luna break down how seller financing via earnouts mimics debt covenants, using recent examples from the healthcare technology sector where post-close revenue targets triggered massive clawbacks. This episode explores the hidden leverage buyers gain when they control the metrics that determine your final payout.
#MergersAndAcquisitions #Earnouts #PrivateEquity #ValuationGaps #SellerFinancing #DealStructure #HealthcareTech #PostCloseIntegration…
The skinny
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