Info

Built to Sell Radio

Built to Sell Radio is a weekly podcast for business owners. Each week, we ask a recently cashed out entrepreneur why they decided to sell, what they did right and what mistakes they made through the process of exiting their business. Built to Sell Radio is the ultimate insider's guide to approaching the most important financial transaction of your life.
RSS Feed Subscribe in Apple Podcasts
Built to Sell Radio
2019
October
September
August
July
June
May
April
March
February
January


2018
December
November
October
September
August
July
June
May
April
March
February
January


2017
December
November
October
September
August
July
June
May
April
March
February
January


2016
December
November
October
September
August
July
June
May
April
March
February
January


2015
December
November
October
September
August
July


1970
January


Categories

All Episodes
Archives
Categories
Now displaying: Page 1
Sep 21, 2016

An earn out is a way to bridge the gap between what you want for your business and what a buyer is willing to pay. In an earn out, a portion of the sale price of your business is set aside for payment in the future if you reach certain goals the acquirer sets for your business. You’ll need to stay on for a few years  as an employee of the acquiring company to lead your team to hit the earn out goals.

Most owners would prefer all of their cash the day they sell their business and most buyers would prefer to pay the entire amount contingent on future performance. Deals get done in the middle where some portion of your money is paid up front with another slice available if you meet your goals as a division of the acquiring company.

Traditional earn outs are typically tied to the profitability of your company as a division of your new owner and they are fraught with problems. Buyers may thwart you ability to hit your number in any number of ways.  In this episode of Built to Sell Radio, you’ll hear from Mac Lackey, a veteran entrepreneur who took an alternative approach to structuring his earn out which put up to 80% of the sale of his company, Kyck.com, at risk.

You’ll learn the surprising approach Lackey took to structuring his earn out to maximize his shot at hitting his number.

0 Comments
Adding comments is not available at this time.