Earn outs and 10 critical success factors
Why read this article?
If you are planning to sell your consulting firm, it is very likely that the transaction structure will contain an earn-out. It can make up a significant part of the consideration you receive for your firm so negotiation of it should be treated with care and respect. Earn-outs come in all shapes and sizes and many sellers have fallen foul of some obvious (and not so obvious!) pitfalls over the years. It is imperative to structure any earn-out with reference to your specific circumstances; there are of course recurring themes and drawing on our deep experience of this complex area we explain below 10 of the most common considerations.