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Company takeover: the crisis puts the seller to contribution (earn-out and vendor credit)

business takeover: Clauses and mechanisms that allow the price of a business to be adjusted according to the possible impacts of the pandemic and that offer a guarantee to buyers are experiencing a new revival with the health crisis.

Two main solutions are used in times of crisis for business takeovers: earn-out and vendor credit.

Earn-out, what is it (company takeover)?

The "earn out" or price complement consists, for a seller, in indexing the sale value of a company on the future performance and profits of the company. A natural solution to secure a buyer on the company's potential.

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