http://startuplawyer.com/merger-acquisition/when-to-use-an-earnout-provision Startup Law, Incorporation, Convertible Notes, Preferred Stock, Stock Options, Venture Capital Sun, 22 Jan 2012 19:35:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://startuplawyer.com/merger-acquisition/when-to-use-an-earnout-provision#comment-3 Ryan Roberts Mon, 05 Oct 2009 16:19:13 +0000 http://www.thestartuplawyer.com/financing/when-to-use-an-earnout-provision#comment-3 Earnouts are used in the acquisition process, not so much the financing process. They may be genuinely interested in your startup, but the numbers are against all startups. Thus, the risk and lower than you believe valuations. Earnouts are used in the acquisition process, not so much the financing process. They may be genuinely interested in your startup, but the numbers are against all startups. Thus, the risk and lower than you believe valuations.

]]> http://startuplawyer.com/merger-acquisition/when-to-use-an-earnout-provision#comment-2345 Ryan Roberts Mon, 05 Oct 2009 16:19:00 +0000 http://www.thestartuplawyer.com/financing/when-to-use-an-earnout-provision#comment-2345 Earnouts are used in the acquisition process, not so much the financing process. They may be genuinely interested in your startup, but the numbers are against all startups. Thus, the risk and lower than you believe valuations. Earnouts are used in the acquisition process, not so much the financing process. They may be genuinely interested in your startup, but the numbers are against all startups. Thus, the risk and lower than you believe valuations.

]]> http://startuplawyer.com/merger-acquisition/when-to-use-an-earnout-provision#comment-2 ADAM Sun, 04 Oct 2009 22:42:06 +0000 http://www.thestartuplawyer.com/financing/when-to-use-an-earnout-provision#comment-2 As someone with a start-up in the first phase of financing, I am worried about venture capitalists wanting to much for their money. They are full of rhetoric that seems intended to diminish the value of my business. If they really feel that way, then why are they interested. An earnout seems to be agood way to say,"Okay, if you are right, then you are right, but if I am right, then you will have to pay me." As someone with a start-up in the first phase of financing, I am worried about venture capitalists wanting to much for their money. They are full of rhetoric that seems intended to diminish the value of my business. If they really feel that way, then why are they interested. An earnout seems to be agood way to say,"Okay, if you are right, then you are right, but if I am right, then you will have to pay me."

]]> http://startuplawyer.com/merger-acquisition/when-to-use-an-earnout-provision#comment-2344 ADAM Sun, 04 Oct 2009 22:42:00 +0000 http://www.thestartuplawyer.com/financing/when-to-use-an-earnout-provision#comment-2344 As someone with a start-up in the first phase of financing, I am worried about venture capitalists wanting to much for their money. They are full of rhetoric that seems intended to diminish the value of my business. If they really feel that way, then why are they interested. An earnout seems to be agood way to say,"Okay, if you are right, then you are right, but if I am right, then you will have to pay me." As someone with a start-up in the first phase of financing, I am worried about venture capitalists wanting to much for their money. They are full of rhetoric that seems intended to diminish the value of my business. If they really feel that way, then why are they interested. An earnout seems to be agood way to say,"Okay, if you are right, then you are right, but if I am right, then you will have to pay me."

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