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Built to Sell Radio

Ep. 68 How to structure your earn-out

09 Nov 2016

Description

Mark Stephenson and his partners grew their conference business, Media Edge Communications, to north of $10 million in annual revenue when they were approached by an acquirer. They agreed to a deal that was just shy of eight times EBITDA—85% of the deal was in cash with 15% in an earn-out. If Stephenson had the deal to do over again, he would change his earn-out structure to avoid leaving money on the table. You'll learn about Stephenson's earn-out mistake along with: - The emotional impact of selling. - How buyers try to grind you down during diligence (and how to counter). - How to tell the difference between a time-kicker and a serious acquirer. - How long it takes to negotiate the sale of a business.

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