Earn-Out Structure

by a searcher from Columbia University - Columbia Business School

4 years ago

Hi all, can anyone provide guidance on how a typical earn-out structure would work? example provide would be much appreciated. I have a target in mind and would like to buy 51% control and eventual reach 100% within a###-###-#### months.

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2 comments

searcher from Universidad Internacional del Ecuador

FYI you don't need to acquire 51% in the beginning in order to have control. If seller is willing, you can start by acquiring a much smaller share and draft an agreement that all stragegic/operating decisions/control is in your hands while you work your way through buying the reamining shares in x amount of time.

4 years ago | like reply | 1 like

searcher from Duke University - The Fuqua School of Business

Are you asking about earnout or a put/call right?

4 years ago | like reply | 0 likes

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