One of the most expensive mistakes in your business sale isn’t the price you negotiate.
It’s the money you assume you’re getting.
Hi, I’m Ken Hardgreaves. I’m a Certified Financial Planner and founder of WealthGen Advisors.
If you’re thinking about selling your business, there’s one mistake I see owners make all the time.
They focus on the headline sale price instead of what they’ll actually have available to support their future.
One of the biggest reasons for that disconnect is something called an earnout.
An earnout can make a deal look much larger on paper because part of the purchase price is tied to future performance after the sale.
If certain targets are met, you may receive additional payments.
If they aren’t, some of that money may never arrive.
The problem is that many business owners begin planning their retirement, investments, estate strategy, or charitable giving based on money they haven’t actually received yet.
I recently put together a deep dive on how earnouts work, why they’re commonly used in business sales, and how to evaluate them before you sign on the dotted line.
If you’re preparing to sell a business or reviewing an offer that includes an earnout, click the link below and let’s take a look.
