What's an Earn-Out When Buying a Business? Jonathan Jay 2024

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Welcome to the second part of a two-part Dealmakers video in which acquisitions expert Jonathan Jay speaks with lawyer John Andrews.
In this video, John Andrews shares his valuable insights into how to buy a business successfully. Whether you're looking for acquisition strategies, business mergers and acquisitions, or buying a small business, this video has got you covered.
In this segment, John Andrews simplifies the concept of an earn-out, an important aspect of structuring a business acquisition deal. He explains how earn-outs can be based on business performance or individual performance, emphasising the potential risks and benefits involved.
Additionally, John Andrews addresses common concerns, such as the timing of setting up a limited company and the importance of having well-crafted articles and a shareholders' agreement. He highlights the significance of involving lawyers in creating the necessary legal documents.
The video also delves into negotiations and the recommended approach for discussing commercial aspects directly with the seller while involving lawyers for legal matters like warranties, indemnities, and security.
Furthermore, John Andrews provides insights into the division of work between lawyers and accountants during the acquisition process. He explains their roles in setting up companies, conducting due diligence, drafting legal documents, and reviewing financial figures. He also offers options for tailoring the due diligence process to fit your specific needs, saving on legal fees while ensuring thorough assessment.
Jonathan Jay explains the importance of having a solid acquisition strategy and how it can maximise your success.
If you're ready to take the next step and buy a business, this video will provide you with essential knowledge and guidance.
Don't miss out on this opportunity to gain valuable insights from industry professionals.
Watch now and make informed decisions on your business acquisition journey!

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If you enjoyed this video and would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at bit.ly/3UelqMn
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