EV, EBITDA, due diligence, purchase price, SPA & more. Clear, practical insights on company sales, private equity, valuation and deal structuring to improve your M&A negotiations.

Earn-outs are not a new concept, but many entrepreneurs don't truly understand how they work and what risks are involved. In this article, we explain everything you need to know: What exactly is an earn-out, what are its advantages and disadvantages, and how can you, as a seller, protect yourself?

This is the fundamental question for every entrepreneur who wants to sell their company or needs to determine its value – whether for a planned transaction, discussions with banks, or for family matters: "How much is my company worth?" Unfortunately, there's no simple answer.