Business Exits: A Teardown of Earn Outs – Part Two

When you are selling a business for one price and the buyer is offering a lower price, an earn out is a way of meeting in the middle.  This is the second post looking at earn outs in detail. Earn outs usually depend on the target hitting agreed KPIs after settlement. They arise in two classic situations:  The […]

Business Exits: Bridging the Valuation Gap with An Earn Out

There is an old saying in M&A: “The money you see at settlement is all the money you are ever going to see.”  So why do people agree to earn outs – mechanisms where 15%-30% of the purchase price is paid over time after settlement depending on whether certain KPIs are reached? The answer is that […]

Business Exits: The Best Time to Sell Your Business

In the next ten years, $1.6 trillion in wealth will be transferred because of the retirement of Australian family business owners.  Many of these are substantial, multi-million dollar businesses. This will lead to a tsunami of businesses being put up for sale as baby boomers seek to cash out and fund their retirement all at […]