Earnouts


Avoiding the Exclusive Negotiations Trap Avoiding the Exclusive Negotiations Trap Avoiding the Exclusive Negotiations Trap Avoiding the Exclusive Negotiations Trap


Competitive tension is essential to exert control over the sale process and present an enforceable timeline to bidders.

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Learn about the advantages and disadvantages of earnouts and how best to structure the terms in order to achieve the goals of both buyer...

In a Business Sale, the Buyer Has the Upper Hand (Part 3) In a Business Sale, the Buyer Has the Upper Hand (Part 3) In a Business Sale, the Buyer Has the Upper Hand (Part 3) In a Business Sale, the Buyer Has the Upper Hand (Part 3)


This is part three of a three-part series from Dave Kauppi, M&A advisor with MidMarket Capital, Inc., that identifies the natural...

In a Business Sale, the Buyer Has the Upper Hand (Part 2) In a Business Sale, the Buyer Has the Upper Hand (Part 2) In a Business Sale, the Buyer Has the Upper Hand (Part 2) In a Business Sale, the Buyer Has the Upper Hand (Part 2)


Dave Kauppi, M&A advisor with MidMarket Capital, Inc., identifies buyer attacks on the transaction value of your business during the...

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Customers are the center of your business if you're in digital services. That's why following the restaurateur's mandate of 'the customer...

11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 2)


Dave Kauppi, M&A advisor with MidMarket Capital, Inc., gives five more reasons out of 11 why earnouts should be considered when selling...

11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1) 11 Reasons to Use Earnouts in the Sale of Your Company (Part 1)


Sellers have historically viewed earnouts with suspicion as a way for buyers to get control of their companies cheaply. However, here are...

Maintaining Confidentiality When Selling a Mid-Market Business Maintaining Confidentiality When Selling a Mid-Market Business Maintaining Confidentiality When Selling a Mid-Market Business Maintaining Confidentiality When Selling a Mid-Market Business


One of the biggest fears when sell a business is breach of confidentiality. You never want your employees, customers or competitors to know...

For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic For High-Tech M&A, Strategic Value is Not Automatic


Dave Kauppi, president of MidMarket Capital, Inc., describes his recent experience in helping a health care information system company get...

Like Rodney Dangerfield, Earnouts Just Don't Get Any Respect Like Rodney Dangerfield, Earnouts Just Don't Get Any Respect Like Rodney Dangerfield, Earnouts Just Don't Get Any Respect Like Rodney Dangerfield, Earnouts Just Don't Get Any Respect


No one seems to like earnouts. Why? Are they evil traps invented by buyers ... or are they just misunderstood? Let's take a look behind the...

What is an Acceptable Range of Deferred Payment in a Business Sale? What is an Acceptable Range of Deferred Payment in a Business Sale? What is an Acceptable Range of Deferred Payment in a Business Sale? What is an Acceptable Range of Deferred Payment in a Business Sale?


Rarely is a mid-market business sold entirely for cash proceeds. The purchase price is usually comprised of cash and some sort of deferred...

To Grow or Sell Your IT Company - A Crossroads Decision To Grow or Sell Your IT Company - A Crossroads Decision To Grow or Sell Your IT Company - A Crossroads Decision To Grow or Sell Your IT Company - A Crossroads Decision


At some point as you grow your IT company, you'll reach a juncture where you need to decide whether to sell your company or grow it on your...

Earnouts or Burnouts: Don't Get Burned on an Earnout Earnouts or Burnouts: Don't Get Burned on an Earnout Earnouts or Burnouts: Don't Get Burned on an Earnout Earnouts or Burnouts: Don't Get Burned on an Earnout


Earnouts are difficult legal clauses to manage and can often lead to misunderstanding and difficulty realizing them. Here is a practical...

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There are lots of valuation methods out there, but is any one of them the right fit for you? Here are some options you may not know about...

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Is an earnout right for your business sale? What should a seller be on the lookout for?

Earnouts: The Double-Edged Sword for Sellers Earnouts: The Double-Edged Sword for Sellers Earnouts: The Double-Edged Sword for Sellers Earnouts: The Double-Edged Sword for Sellers


The earnout is an underused, and often misunderstood, part of the business deal structure. Find out when it works... and when it doesn't.