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This is light grey. I'm dissapointed in you HN. This is absolutely correct. One common version: Many sells come with some sort of earn-out. Meaning that the co
by enjo 9y ago
This is light grey. I'm dissapointed in you HN. This is absolutely correct.
One common version: Many sells come with some sort of earn-out. Meaning that the company has to perform at some level over some amount of time in order for the buyer to be on the hook for the full amount of the sell price (or some other bonus).
It is not uncommon to attach a buy-back clause to the earn-out. If you fail to hit the earn out, you have some ability to buy back the company and/or it's assets (there are many different versions). It's a win-win clause. If the company fails to perform under its new leadership the buying company has some hedge against it. It gives the seller a chance to effectively hedge at least some of the risk that they won't be able to fully earn-out the purchase price due to management issues at the new company.
I've been on the executive team for five company sales. Two of them had exactly this clause. Both during earlier stages. We never exercised them.
- hellbanner 9y agoanother comment by oh_sigh downvoted out of disagreement with facts: https://news.ycombinator.com/item?id=14597026 https://news.ycombinator.com/item?id=14597026
- oh_sigh 9y agoDon't cry for me, I'm a low quality poster(or rather, I tend to match the quality of posts I respond to, which are frequently low quality posts) who dang has had to put in place multiple times. But I will say that I originally created this username many years ago to at least try to rebut ridiculously wrong things which were popularly accepted in the comments section, or right things which were down voted, so I am used to this. I think this site has a problem in that a poorly stated truth is considered a bad post, but nonsense, as long as it is follows a certain style and rhetorical form is welcomed with open arms. But oh well, it isn't my site to run.
- dredmorbius 9y agoIf you're a low-quality poster, you'll have to work on downholding your unstandards. You've had some good comments in the past day or so, at least. The war between truth and various forms of confirmation bias is an old and long one.
- lmm 9y agoA poorly stated truth contributes less to the discussion than a well-formed but incorrect post. Or at least, the end result is that I find the discussion here more valuable than on most of the web (as much as it's declined under dang's niceness policies).
- oh_sigh 9y agoI disagree.