The advantages & disadvantages of the earn-out clause in the acquisition of a company | Thomas Breit

A question for you as an entrepreneur: Do you like to negotiate an advantageous price? Yes? Well, you are not the only one. Especially in the case of large sums (such as the purchase and sale of companies), this can quickly lead to disputes. To ensure that both sides still agree to the deal, there is the so-called earn-out clause.
The earn-out model helps entrepreneurs to keep the goal in mind and to compromise. How exactly it does this and what advantages or disadvantages arise for buyer and seller, I have summarized in the following video.
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