We had an earnout in our acquisition that was hit in full. In a surprise twist, the company that acquired us was, themselves, acquired before the end of the earnout period. Our acquisition agreement did not account for this possibility, but the CEO was super cool and accelerated the earnout.
Don’t be like us — make sure you include this possibility (and others, including major change of ownership, merger, bankruptcy, etc.) in your agreement. Could’ve easily screwed us and our investors if the CEO was not such a person of integrity.
We had an earnout in our acquisition that was hit in full. In a surprise twist, the company that acquired us was, themselves, acquired before the end of the earnout period. Our acquisition agreement did not account for this possibility, but the CEO was super cool and accelerated the earnout.
Don’t be like us — make sure you include this possibility (and others, including major change of ownership, merger, bankruptcy, etc.) in your agreement. Could’ve easily screwed us and our investors if the CEO was not such a person of integrity.