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flpanhandle · 09-22-2007, 01:39 PM

Regarding selling a business, has anyone ever been involved with an Earn Out Agreement\Contract as part of the transaction? If so, can you share your experience?

Nords · 09-22-2007, 01:51 PM

FLPanhandle, please don't multiple-post on this forum.

Put it up once (this area of the board is a good choice) and let people answer in just one place.

So far your post shows up three separate times in the "New Posts", "Portal", and RSS options. It's more noise than signal...

There are several posters who've experienced what you ask. They'll be along shortly to comment on what they learned from it.

flpanhandle · 09-22-2007, 01:59 PM

Sorry. Figured not everyone uses New Posts option. Will not happen again Sir!

flpanhandle · 09-22-2007, 02:03 PM

I'm the seller.
I really would prefer to walk away with a complete sale, ready to get out after 12 years, but if this is the only option, then I may have to consider it, only as a last resort, hopefully.

Martha · 09-22-2007, 02:23 PM

Quote:

Originally Posted by flpanhandle

I'm the seller.
I really would prefer to walk away with a complete sale, ready to get out after 12 years, but if this is the only option, then I may have to consider it, only as a last resort, hopefully.

If this is what you end up doing as a last resort, be sure you have a good lawyer to negotiate terms and really pin down the formulas for what you will get in the future and have plenty restrictions on what can and can't be spent. It is hard to do a good job drafting without loopholes.

There are all sorts of issues to think about so be sure to have someone who knows what they are doing.

Martha · 09-22-2007, 01:59 PM

Humph. I responded to one of your posts, but it seems to have disappeared. Are you the buyer or the seller? My hunch is that you will have better success realizing on an earn out agreement as a seller if you stay involved in the business, lending your expertise so that the business can become as successful as you believe it can be. Otherwise, the buyer should have some good solid plans for growing the business and a proven track record.