Understanding earnouts in the context of a business sale

07/11/2013 | Crain's Cleveland Business

An earnout, defined as payment based on performance, can play an important role in the sale of a business, but it's vital that both parties understand its role in the transaction. A business columnist discusses the concept of an earnout, including valuation issues, and applicable accounting rules in the context of the sale of a business.

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Crain's Cleveland Business