Clark Wilson Family Office partner David Ford, FEA was interviewed by Canadian Family Offices for the article, “Buying and selling a business: ‘Earnouts are the new reality’”.

Many have heard of the contractual entity known as an earnout, but its complexity runs deep, meaning there are many ways for an earnout to go sideways, hurting both the buyer and the seller of a business. Fundamentally, an earnout is used in a mergers and acquisitions (M&A) deal when the buyer and the seller of a business have different opinions regarding the company’s valuation, both at the time of the sale and its post-acquisition potential.

However, their incorporation into M&A contracts has increased notably in recent years due to significant ebbs and flows in the marketplace and the state of these types of deals. In this article, David comments on some key factors he advises clients to consider when approaching such opportunities.

Read the “Buying and selling a business: ‘Earnouts are the new reality’” in full HERE.

About Canadian Family Offices

Canadian Family Offices is a thought leader in topics of interest to ultra-high-net-worth Canadians. Combining the journalism of the National Post and expert insight and practical information from service providers to ultra-high-net-worth clients, Canadian Family Offices aims to educate and empower readers while demystifying the family office industry and exploring how this sector manages and grows clients’ wealth.