05/31/2026
Are you planning to sell your company but finding it hard to agree on a price? An earnout might be the solution you need. An earnout is a deal structure where part of the purchase price is paid only after the business hits specific goals post-acquisition.
It is a powerful way to bridge the valuation gap between what a buyer wants to pay and what a seller thinks the business is worth. However, it comes with risks, especially around how the new owners manage your former company.
Have you ever used an earnout in a deal, or would you prefer a clean break with all cash upfront? Let's discuss the pros and cons in the comments below!