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Earn Your Way out of Your Business

A business earn out requires a risk that pays a greater benefitGuest: Jane Johnson, Waypoint Business Strategies, LLC

Featured Topics:  The Earnout – an Exit Options for business owners.

This episode concentrates on a single exit strategy for business option for business owners – the earnout.

A major misconception about selling and exiting a business is that it is similar to purchasing a car or a house. Very rarely is the closing on the sale of a business a singular event like with residential or even commericial real estate.

Many times, for a whole host of reasons, the business owner who is selling and the new owner will be connected together for a period of time. Their objectives aligned for mutual success. A business earn out is one such example in which both parties have a vested interest in the continual growth of the existing business. The sellers take the risk of extracting their business wealth over time. The new owners get the benefit of having the exiting owners continuing to have a vested interest in the growth and success of the company they are selling. For many businesses this is the best and preferred exit strategy for business.

In this episode we discuss the particulars of a business earn out with Jane Johnson and her specific experience with it during the sale of her first business.

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Terms/Concepts

Earn out, what is an exit strategy, exit plan, Due diligence, Business growth plan, Advice for small business owners

The Big Picture (Episode Feature) Question

What would you prefer as your business exit strategy? (A) Take a cash buyout at a significantly lower amount or (B) An earnout with the potential of significantly higher dollars received over a period of time?

Featured Guest Information

Jane Johnson
Waypoint Business Strategies LLC
www.waypointbusinessstrategies.com
info@WaypointBusinessStrategies.com
(978) 468 3498

Waypoint Business Strategies provides custom exit plans, consulting as well as training programs for smaller business owners.

Tip/Offer of the Week

Get a good overview of what an exit strategy encompasses from one of the leading experts in the area, John Leonetti

Exiting Your Business Protecting Your Wealth by John Leonetti          Exiting Your Business Protecting Your Wealth
John Leonetti

Links Mentioned in the Episode

Grow profitable Exit Strong white paperGrow Profitable Exit Strong – A business white paper from Big Picture Advisors

 

 

Additional Reading

 

Exit Strategy Book

Exit Strategy: The Art of Selling a Business: The Vertical Horizontal Selling Method 
Sheldon Manheim

 

 

Exiting Your Business Protecting Your Wealth by John Leonetti          Exiting Your Business Protecting Your Wealth
John Leonetti

 

 


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About the Host

Joel Goobich is a big-picture guy with sharp insight into how individual parts make a strong whole. He has 30+ years of entrepreneurial endeavors; starting, building and exiting businesses. He is tireless in the pursuit of solutions to boost your business and put you on a track to a profitable transition and exit to your next act.