How to maximise your earnout
How to maximise your earn-out
Having founded, built and sold many companies ourselves, we know exactly what it’s like. More often than not the entire sale process proves a critical distraction from business as usual, and this can severely hamper post-deal growth. You now need to turn your attention to maximising your earnout.
We have been helping companies get ready for sale and through the deal process since 2015, using the 2Y3X framework to plan and execute post-sale strategies to get the most value out of the deal. We have also worked on the buyer’s side, performing due diligence projects for listed companies prior to acquiring target firms. This gives us a deep perspective from both sides of the table.
Planning for continued rapid growth post-deal is incredibly important. After all, it is to both parties’ advantage if you meet or exceed your maximum targets: the multiplier escalator works in your favour as well as that of the new owners. The buyer wants a solid profit engine long after you have left the company or moved up into the acquirer’s management ranks.
The Earnout Maximiser® Programme is designed specifically around meeting ambitious targets whilst building a resilient and capable succession team. It is perfectly suited to planning the post-sale earnout rebound. As such we offer short a four-month kick start process. This develops the structured roadmap required to hit the target, and onboards the team who will deliver each element and reach it.
We also work with companies to deliver the whole programme over the course of two years leading up to the final year. This provides a more robust execution path as we are on hand to hold the team’s feet to the flames all the way to completion.