The “Earnout” clause features in an increasing number of Australian M&A transactions – both public and private. This earnout requires the outgoing owner to “earn” some of the agreed sale value through achievement of certain performance level after acquisition. WHY EARNOUTS? When an acquirer assesses the value of a business they consciously or unconsciously estimate…
By Mark Ostryn, Director Strategic Transactions 29th February 2016 Key Takeaway: Many MidMarket accountants are not sufficiently involved in business acquisition and sale transactions. As a result, accountants neglect significant fee income and undermine their own knowledge and ability to influence. Background – A Challenging Situation Much has been written on the…
A Guide for MidMarket Sellers – Part One Mark Ostryn This week the repugnant Donald Trump bragged to his adoring masses at a Florida rally* that he managed to get a $20m discount from a golf course he was purchasing, after he signed the contract. Trump simply told the seller he wasn’t paying and threatened…