Search Fund Earnouts: Fair Deal or Hidden Trap for Sellers?
Search Fund Earnouts: Fair Deal or Hidden Trap for Sellers? Quick Answer Search fund earnouts typically push 15% to 30% of purchase price into a 2 to 3 year measurement period, usually tied to EBITDA. They can be fair when the buyer offers a cushion, GAAP-plus accounting, an ordinary-course covenant, and a no-shop clause that […]