Most entrepreneurs accept earnout terms they'll never hit and lose millions in the process. Jim DuBos shares the costly earnout mistakes that destroy deals and how to structure them for success.
RECOMMENDED RESOURCES: → Get Exit Ready Business Training HERE: https://www.dubos.me/training → Take The Exit Ready Assessment: https://www.dubos.me/exit-assessment What You'll Learn in This Episode: → Why 24-month earnouts create buyer-seller conflict → How to structure tiered earnouts that protect your payout → When to walk away from unrealistic earnout terms → The adjusted EBITDA calculations that determine your earnout → How past performance should guide earnout negotiations Who This is For: → Business owners planning an exit in the next 3-5 years → Entrepreneurs currently negotiating earnout terms → Anyone who wants to avoid costly post-deal conflicts → Business owners who've never hit their earnout targets
CHAPTERS: 00:00 Introduction to Earnout Conflicts 00:32 What is an Earnout 01:27 Why 24 Month Earnouts Are Too Long 02:27 Goal Conflict Between Buyers and Sellers 03:07 Adjusted EBITDA and DPA Definitions 03:47 Creating Tiered Earnout Structure 05:00 When to Walk Away From Bad Terms 06:42 The Car Lot Negotiation Analogy 08:19 Why Entrepreneurs Accept Bad Terms
About Jim DuBos & The DuBos Group: Jim DuBos is a serial entrepreneur with 35+ years of experience, having founded 10 companies and completed 7 successful exits with 20+ acquisitions. As founder of The DuBos Group, he helps business owners build exit-ready companies and navigate complex M&A transactions.
Connect with Jim DuBos: → Website: https://www.dubos.me → LinkedIn: https://www.linkedin.com/in/jamesdubos/ → Email: Entrepreneurship@dubos.me → Free Exit Ready Business Training: https://www.dubos.me/training → Take The Exit Ready Business Assessment: https://www.dubos.me/exit-assessment
#EarnoutNegotiation #BusinessExit #MergersAndAcquisitions #ExitStrategy #BusinessSale #DueDiligence #BusinessValuation #EntrepreneurTips #BusinessOwner #ExitPlanning
Topics discussed: earnout negotiation, business exit strategy, merger acquisition deals, post deal conflicts, adjusted EBITDA calculations, tiered earnout structure, buyer seller goal alignment, exit planning mistakes, business valuation terms, DPA negotiations, when to walk away from deals, realistic earnout targets, past performance analysis, deal negotiation tactics, business sale preparation, exit ready assessment, entrepreneurship lessons, M&A best practices, deal structure optimization, business owner exit planning
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