FAQ

1) Because most profitable businesses don't sell via the usual methods

2) Because by structuring the deal this way, the owner can achieve a higher valuation in exchange for being paid over time

The "valuation gap" between buyer and seller can be bridged if risk is reduced for both parties. This is where earnout.com comes in. Our platform enables sellers to have more confidence that they will be paid the deferred consideration they earn, enabling them to be more open to deal structures where most of the consideration is deferred. This makes the opportunity far more attractive to buyers.

No. The principle is for the owner of the business to be compensated over time rather than in cash at closing, making the deal attractive for both buyer and seller. There are many ways that the deferred consideration can be structured, other than an earnout according to the traditional definition.

You can structure the deal to include deferred consideration of a different kind (not a traditional earnout) and still use the earnout.com platform.

Remember that if most (or all) of the consideration is deferred, you may not need an SBA loan anyway. So it is worth considering the use of a traditional performance-based earnout in the deal structure.

We charge a membership fee for buyers (waived for the founding members) and a transaction fee whenever a buyer acquires a business they find on the earnout.com platform