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The other issue with the earn out, from the entrepreneur's point of view, is that you're providing the acquirer with effectively interest free financing for the
by frenchman_in_ny 14y ago
The other issue with the earn out, from the entrepreneur's point of view, is that you're providing the acquirer with effectively interest free financing for the earn out, while you're working on integrating. And there's nothing guaranteed in the earn out, and they're usually all-or-nothing structures (ie, get $0 if you hit 99% of target)