Earnouts Explained: How They Work + 5 Reasons They Backfire

Earnouts shift 30-50% of price to contingent compensation. How metrics get redefined post-close, why 40-60% of stated earnout typically gets paid, and how sellers protect themselves.

Earnouts shift 30-50% of price to contingent compensation. How metrics get redefined post-close, why 40-60% of stated earnout typically gets paid, and how sellers protect themselves.