Drafting an earn-out agreement

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An earn-out agreement is an arrangement under which all or part of the purchase price on the sale and purchase of the business, or the shares in a company, is calculated by reference to the future performance of the business or company being purchased.

They are commonly used as a management incentive where owner-managed businesses are sold and the managers continue to work in the business for an agreed period following the sale.

We will look at the details of the business and provide the most appropriate advice, often working with fellow professionals such as accountants.

Who we help

  • Those involved in the management of the company
  • The seller
  • The buyer

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