Earnout vs Seller Note: Which One Is Best For You? скачать в хорошем качестве

Earnout vs Seller Note: Which One Is Best For You?

This guide from Rogerson Business Services compares seller financing and earnouts as primary tools for structuring lower-middle-market business sales in California. The author, Andrew Rogerson, argues that fixed promissory notes generally offer a faster closing timeline and lower risk of litigation compared to performance-based earnouts. While earnouts can bridge valuation gaps, they require complex legal drafting and often depend on the seller’s post-close involvement to meet specific financial benchmarks. In this video, Andrew also provides specific advice for navigating SBA loan requirements, federal tax implications, and California-specific legal hurdles like non-compete clauses. Ultimately, the resource serves as a strategic roadmap for business owners in industries like manufacturing and healthcare to maximize their exit proceeds while minimizing operational friction. __________ Hello, I'm Andrew Rogerson, Rogerson Business Services Andrew Rogerson helps the owners of privately held businesses with valuing and brokering the sale of their businesses throughout California. Additionally, Andrew is a business owner who has been operating for 40+ years, including successfully owning and operating five businesses. Andrew is a Certified Mergers & Acquisition Professional (CM&AP), Mergers & Acquisition Master Intermediary (M&AMI), Lifetime Certified Business Broker (LCBB), author of 4 books, and is available for speaking presentations on request. Andrew helps business owners in California value and sell their business in the Lower Middle Market, or with Gross Revenue between $1 million and $100 million.