Accept an earnout without these four clauses and you're financing the buyer's mistakes with your money.
Before you sign, demand:
— A floor: minimum guaranteed payout regardless of performance. No floor, no deal.
— Defined metrics YOU influence — revenue, not 'net profit' the buyer can bury under their costs.
— A non-interference clause: they can't strip your traffic sources then blame the decline on you.
— Short window: 6-12 months max, because every month is a month they control your number.
Earnouts aren't a price — they're a leash. Negotiate the length.
Took an earnout that paid out full? Rare. Prove me wrong below.
Sell It Already
@SellItAlready
Accept an earnout without these four clauses and you're financing the buyer's mistakes with your money.
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