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    Kevin Kretz

    Very informative article on Earn-Outs, but I had some thoughts on conflict of interests that may arise from these deals. I could imagine a business which acquires another firm but chooses to perform under the threshold where the payment for an ‘Earn-Out’ would be granted. I assume there must be some way to assure the sellers that the buyer of the firm are doing everything in their power to make the most money during the time of the ‘Earn-Out’. As a seller, I would want to not have a large amount of the deal contingent on the ‘Earn-Out’ because the future functions of the business would be out of my control.

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