When it comes to acquisitions, earn outs can be a love/hate thing. On one hand, they give the acquiring company some time to figure out if the acquisition was a good idea. But on the other hand, they can be a pain in the butt because the target company is essentially on probation for a certain amount of time. In this video I'll break down what an earn out is and what you need to know about them if you're considering an acquisition.
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