Our own Crystal Flick with great advice and wisdom.
Earnouts can help bridge the valuation gap between buyers and sellers – but they’re also one of the biggest sources of post-deal conflict.🤝💸 Here’s what Milwaukee-area M&A experts say to watch out for: - Michael Schroeder, Taureau Group, LLC: “In the case of a strategic transition, strong operational covenants, both positive and negative, are important.” - Crystal Flick, TKO Miller: “...Structure the earnout in a simple, measurable and short-term manner – or better yet, negotiate a clean, contingency-free deal.” - John Emory Jr., Emory & Co., LLC: “...The seller needs language detailing how the earnout will be calculated and how changes in operations or expenses by the new owner would affect the calculation.” - Robert Jansen, Bridgewood Advisors Inc.: “For disciplined acquirers, earnouts are a valuable tool to reward performance, reduce risk and support a smoother integration.” 🔗 Read more on how these experts manage relationships between buyers and sellers at the link in the comments. #BizTimes #MergersAndAcquisitions #BusinessTransition #Earnouts #PrivateEquity #TaureauGroup #WisconsinBusiness
