Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Earn Out Agreement
Old 09-22-2007, 01:39 PM   #1
Dryer sheet aficionado
 
Join Date: Apr 2007
Posts: 47
Earn Out Agreement

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?
__________________

__________________
flpanhandle is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-22-2007, 01:51 PM   #2
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
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.
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 09-22-2007, 01:59 PM   #3
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
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.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 09-22-2007, 01:59 PM   #4
Dryer sheet aficionado
 
Join Date: Apr 2007
Posts: 47
Sorry. Figured not everyone uses New Posts option. Will not happen again Sir!
__________________
flpanhandle is offline   Reply With Quote
Old 09-22-2007, 02:03 PM   #5
Dryer sheet aficionado
 
Join Date: Apr 2007
Posts: 47
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.
__________________
flpanhandle is offline   Reply With Quote
Old 09-22-2007, 02:07 PM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by Martha View Post
Humph. I responded to one of your posts, but it seems to have disappeared.
I think the moderators are still working through the "Merge Threads" process.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 09-22-2007, 02:23 PM   #7
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Quote:
Originally Posted by flpanhandle View Post
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.
__________________

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What's a professor earn? Nords Other topics 38 09-12-2006 08:19 PM
MOVED: Anyone else looking to earn money while at home? Earn money via paypal Cut-Throat FIRE and Money 0 06-07-2006 07:45 PM
Pre-nuptial Agreement to Protect FIRE Nestegg Jay_Gatsby Young Dreamers 82 01-24-2006 04:00 PM

 

 
All times are GMT -6. The time now is 03:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.