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Old 01-15-2007, 08:31 AM
Ace Ace is offline
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Join Date: Oct 2006
Posts: 133
Re: Funding an Acquisition

Quote:
Originally Posted by tella View Post
You may want to consider an earn out but they are hard to track. For example if the revenue of the business increases X percent they get a piece of it. This insures they still have a vested interest in the business. There is a time limit on it usually 1-5 years depending how long the prior owner wants to be involvled in the business.
I would not recommend an earn out for a transaction this size you would take more time figuring it out than running the business.
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