Financial Structures: Earnouts (EP.19)

In situations where the buyer and seller disagree on future earnings, earnouts help bridge the gap by taking a "wait and see" approach to a portion of the valuation.  But they can also cause trepidation in sellers as they introduce uncertainty.  In this episode, we lay out some questions you should consider before agreeing to an earnout in your transaction.  Discussion with Brent Beshore and Emily Holdman starts @ 1:53.