What are earnouts, why are they used? Earnouts maximise value for the seller of a business and de-risk the transaction for a buyer. Businesses are valued and priced by a buyer largely on past performance (although internally a buyer will have a value based on future performance) whereas a seller who understands the prospects and opportunities […]
Valuation – “What is the Value of My Business”, How is it Valued?
How much would you pay for your own business? How do advisors answer a business owners question “what is the value of my business, what will we get for it”? The easiest way to answer is to ask the owner how much they would be willing (truthfully) to pay for their own business? Very often there is a significant […]