GovCon EarnOut structures for large pending contracts?

by a searcher from INSEAD

10 months ago

Curious if anyone has experience with government contracting M&A and specifically terms for securing a large multi-year contract.

The opportunity I am looking at feels confident they will secure 2 very large contracts that would guarantee revenue over the next 5 years.  The seller wants this to be captured in the purchase price.  I am assuming some sort of forgivable note tied to performance (perhaps revenue?) here would support this.

Thoughts?

0 likes
24 views
0 comments

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Investor seeking Self-Funded Search Deals

Downsides of "buying a job" below 750k+ EBITDA?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.