Benefits of an Earnout

When you are acquiring a business, there’s two avenues to approach it with.

Buy the business outright and get it for a better deal with all cash upfront.

Or acquire it at a bigger price with money down and the rest as an earnout.

The earnout allows you to acquire a business and stretch payments over time, building you runway to build the business and enhance it beyond what you acquired it at.

It obviously can be troublesome to have to owe somebody but you allow yourself time to build the business by pouring some capital in to the growth of the business.

An earnout can be done in several ways.

One is a guaranteed earnout paying out $X over Z months.

Another is a performance based earnout where you participate in the % of sales.

Another type of earnout is where you collect in a % of sales or profits that go above baseline. This is where you determine a base level amount whereby anything that goes above it will be attributed to the earnout portion.

Most great earn-out structures can include all of the above to get a deal done.

While the best deals are simple, the best way to get a deal done is to incentivize the seller to feel like they are getting an amazing deal.
If you would like to hop on a call with us to go over things related to acquisitions and general business overview, please schedule a time here. We do a one hour deep dive where we go over your needs as it relates to acquisitions & business expansion, and then we go on the hunt for you to line up a business that fits.

Email – acquisitions@jarbly.com

Phone – (800) 773-1523

We look forward to helping you with your next buy or sell opportunity.

Leader in Business Consulting with Expertise in Representing Sellers & Buyers on Deals

Jarbly is a leader in business consulting with expertise in helping with revamped strategies, enhancing valuation, positioning for an exit, and business and real estate sales.

Contact Us

Phone: (800) 773-1523
Email: support@jarbly.com

About Jarbly

JARBLY’s focus is on business consulting with an emphasis on creating disruptive ventures and high quality boutique services to enhance a business’ valuation and lead to a high quality exit. As JARBLY has been heavily involved in the digital space including its own ventures for a decade with servicing hundreds of clients around the world, it is very well versed with understanding technical aspects of a deal including value proposition, product offerings, marketing, metrics, ROI, moats, and value-add initiatives. JARBLY has the expertise and knowledge on various businesses, industries, and deals and is very creative with structure to help increase valuation, or help guide you to a strategic exit. JARBLY has helped brands grow and also cultivates business related and real estate opportunities that are ripe for acquisitions, helping buyers and sellers get what they are seeking from a deal.

Whether it comes to growing your business, including acquiring businesses you want to understand the deal. We understand deals and where the maximal value in a transaction is. Our bread and butter is to provide a win for our clients including positioning your company for an eventual high quality exit. We have the unique and uncanny ability to bring high quality materials to the table and renewed strategies that consistently work. We help with financial enhancements, implementing systems, and prepping your business with materials including Prospectuses, Confidential Information Memorandums, and high quality Value Proposition Decks.

JARBLY looks forward to working with you to enhance your business profits nad valuation and help you on your next acquisition, exit, or real estate opportunity including both commercial and high end residential properties with high end service from a qualified team of passionate individuals that help you secure the deal. JARBLY LLC is part of Trend Realty in Sarasota, FL operating the Boca division as the JARBLY team.

Jaret will hop on a quick call with you to understand your and your business.

Text or call (800) 773-1523 and Jaret can arrange to have a brief consultation with you at your business location before embarking on a series of consulting calls or a full immersion.

Benefits of an Earnout