Earn-out Agreements
Selling a business can be tough, with so many things to consider. Earn out agreements will be on that list of considerations so it important to be clear about what this means for you and your business sale.
At Huntley Legal, we understand the pressures you are facing during the sale of your business and we can help ease those pressures by providing you with professional advice to ensure you make your business as attractive as possible to the buyer whilst still obtaining the best possible price.
What Is An Earn Out Agreement?
An ‘earn out’ agreement is where the price agreed upon for the sale of the business will depend upon the performance of the business for a specified time after the sale.
The terms of any agreement will normally include an initial payment by the purchaser when the business is sold, along with a number of other payments that are normally based on the percentage of turnover. The period of the earn out agreement depends upon the initial deal, but could stretch into the second year of trading or even further.
Due to turnover being the usual method of quantifying how healthy a business is, this figure is normally used rather than the profit from the business. This is because profits can be harder to measure, with the potential to offset these or control how the profit is presented.
Putting together an earn out agreement can be a difficult and sometime lengthy process, but we will keep the focus on your needs to ensure we negotiate the best deal possible for you in your business sale.
Why Choose Huntley Legal?
We know that you need a no nonsenses law firm who can give you exactly what you pay for and that is exactly what we will do. You can rely on our experienced team to provide you with bespoke advice tailored to your business and that we will get you the best result possible in the earn out agreement. Where you need us to react quickly to a legal situation, we will be there to help you get control.
Our fee structure is simple and easy to understand, with a number of options available to you such as fixed fees, capped fees or very competitive hourly rates. In addition, we offer a monthly billing service so you can stay in control of your legal costs.
Where you need help, advice and preparation of an earn out agreement, please do get in touch as we would be delighted to review your circumstances.
FREE initial enquiry
To discuss your legal needs, please call Marie Huntley on 020 3609 8764.
Simply outline the situation you're facing, and we'll tell you how we can help and what it will cost.
There's NO CHARGE for the initial conversation. That's right. It's completely free. Zilch. Nada.
By the way, our fees are often fixed or capped to help you budget, and we send invoices monthly so you can spread the cost.