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	<title>Business for Sale Blog - News and views on buying and selling businesses &#187; deferred consideration</title>
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		<title>Earnouts &#8211; key issues to consider</title>
		<link>http://www.business-sale.com/blog/selling-a-business/22/earnouts-key-issues-to-consider</link>
		<comments>http://www.business-sale.com/blog/selling-a-business/22/earnouts-key-issues-to-consider#comments</comments>
		<pubDate>Wed, 21 May 2008 11:17:12 +0000</pubDate>
		<dc:creator>Chris St Cartmail</dc:creator>
				<category><![CDATA[Selling a Business]]></category>
		<category><![CDATA[deferred consideration]]></category>
		<category><![CDATA[earn-out]]></category>
		<category><![CDATA[earnout]]></category>
		<category><![CDATA[earnouts]]></category>
		<category><![CDATA[exit stategies]]></category>

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		<description><![CDATA[When buying or selling a business, there is frequently a gap between the seller’s perception of the business’s potential worth and the price a purchaser is prepared to pay based on actual performance. One way of addressing this is to include an earn-out as part of the deal. In this situation, the purchaser will typically pay 60-80% of the asking price upfront, with the remaining 20-40% to be paid subject&#8230; <div class="addthis_toolbox addthis_default_style " addthis:url='http://www.business-sale.com/blog/selling-a-business/22/earnouts-key-issues-to-consider' addthis:title='Earnouts &#8211; key issues to consider '  ><a class="addthis_button_facebook_like" fb:like:layout="button_count"></a><a class="addthis_button_tweet"></a><a class="addthis_counter addthis_pill_style"></a></div>


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