Your MSP Sale And ‘Earnouts’

In a deal structure known as a "earnout," a portion of the acquisition price of a firm is postponed and dependent on its future performance. Earnouts can provide a number of advantages to both buyers and sellers, including the chance to spread out the final purchase price over time and pay less up front. To get at a deal that both parties can accept, they necessitate significant negotiation and meticulous structuring.

Due to their capacity to lower upfront costs and lessen risk on the buyer...