Surviving an Earnout Provision in a Business Sale
If you are selling a business, the buyer may want to pay part of the price through an earnout provision. This is a contractual arrangement in which the seller receives additional payment in the future if certain financial goals are met. In other words, part of the price is contingent on the performance of the company after the sale. Earnout sales are becoming more common, especially in high-growth companies, those with unproven products, and situations when the buyer and sell
