Hey everyone, JP Here.
My fiscal situation has improved drastically. I have 0 Credit card debt now and with a comfortable cushion saved up in the bank and I'm ready to use that leverage in my favor. So I started digging around SBA Loans, HELOC funds, then I came across something called Earn Out Financing.
So knowing this community is a massive resource for me so I came back on here to look for a thread that had to do with anything with Earn Out Financing. I was not able to find anything on here anywhere, so I figured I'll start this thread.
Before I dive in deeper, I want to try and explain it in the simplest terms as I understand.
An Earnout is where a buyer can put up a down payment on a business usually from a owner, takes ownership and uses the income of the business to pay off the remaining funds they owe over a fixed amount of time.
Obviously, a seller wants to sell their business, and for large mid-six-figure and seven-figure deals. Meaning that its much more likely to be open to earn-outs. What I'm reading is Seller financing is often interest-free, which is super beneficial for you a buyer.
I was wondering if there was anybody on this forum that had experienced a buy-out deal and how did the proceedings go. Only because I'm interested in exploring this route of leverage.
My fiscal situation has improved drastically. I have 0 Credit card debt now and with a comfortable cushion saved up in the bank and I'm ready to use that leverage in my favor. So I started digging around SBA Loans, HELOC funds, then I came across something called Earn Out Financing.
So knowing this community is a massive resource for me so I came back on here to look for a thread that had to do with anything with Earn Out Financing. I was not able to find anything on here anywhere, so I figured I'll start this thread.
Before I dive in deeper, I want to try and explain it in the simplest terms as I understand.
An Earnout is where a buyer can put up a down payment on a business usually from a owner, takes ownership and uses the income of the business to pay off the remaining funds they owe over a fixed amount of time.
Obviously, a seller wants to sell their business, and for large mid-six-figure and seven-figure deals. Meaning that its much more likely to be open to earn-outs. What I'm reading is Seller financing is often interest-free, which is super beneficial for you a buyer.
I was wondering if there was anybody on this forum that had experienced a buy-out deal and how did the proceedings go. Only because I'm interested in exploring this route of leverage.
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