You’ve built your property business from the ground up. You’ve navigated the regulations, managed the tenants, and grown your portfolio. Now, you’re at the exit table. The buyer offers you a price that meets your expectations, but there’s a catch: a significant portion of that money is tied to an earn-out.
An earn-out is a deal structure where a portion of the purchase price is paid after completion, contingent on the business hitting specific financial targets. On paper, it’s a great way to bridge the valuation gap. In reality, it is one of the most contentious parts of any merger or acquisition deal.
If you want to protect your final payout as a seller, you need to understand why these structures often crumble and how to bulletproof your Sale and Purchase Agreement (SPA).
Read more: https://tonuaboaba.com/protect-your-final-payout-avoid-earn-out-pitfalls/
