Anyone who recently worked on an earnout deal, share some inputs.
Because of covid, intentionally or unintentionally most industrial businesses post losses on P&L, however this year because they are selling, the TTM is skyrocket 5x.
This calls for earnout as that is the right thing to do, how do you structure it? ebitda or ebit?
Minimum and maximum threshold of revenue and ebitda/ebit both?
Definitive employment agreement?
How do you define the buyer expenses (the expense adjustments the new buyer will have, because you will not run it like the seller ran for 40 years)?
Multi-year earnout
by a searcher
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