The Earn Out: Cash isn’t Always on the Table

A large part of our business involves representing owners who are selling their home energy company. We have received well over 100 offers for businesses in the last year alone. Of those offers, around 80% contained some type of future performance payout or “earn out.” In contrast, over 70% of the offers that our clients have accepted were for cash (or almost all cash) at closing. Better understanding how an earn out works helps both buyers and sellers evaluate offers to determine what they will actually pay or receive from the transaction.

This story originally ran in Fuel Oil News. View the full article here.