Dan Coppel spoke to The Times/Raconteur for an article discussing earn-outs. According to Dan, earn-outs should offer sellers greater protection against risks that will be beyond their control.
“What if the buyer doesn’t allocate the resources necessary for the seller to hit their targets? Or what if it restructures the business, making it problematic to track performance? Failure to account for such factors in a deal means that sellers can be short-changed through no fault of their own,” Dan said.
Read the full article.