Earn-Out Sale

Earn-Out Sale

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Earn-Out Sale

Earn-Out Sale definition:  When business owners sell ownership in their family business in exchange for a share in annual earnings for a specified period of time.  They are no longer control or manage the business, but benefit from future growth in the business. As opposed to an up-front cash sale, the business owners’ compensation is not guaranteed.

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