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Lessons from a Private Equity Earn Out: How I Lost £550K Due to a Lowercase 'C'

The excitement and promise of an acquisition shouldn't be mired by the politics of a bad earn out agreement.

This would have shielded me from the situations which were clearly a conflict of interests between my business and theirs, while also giving me more leverage and political safety to push back when I felt pressured to do things that in the end wasted time and opportunities. In the end my goodwill was not returned – on top of the dispute resolution I was also made redundant after the year was up – and the time lost could have been spent doubling our earnings by bringing in new revenue. By delaying integration, putting your IP in escrow, and continuing to hold board meetings until after the earn out is complete, you'll create a boundary that allows you to focus on your main priority—whatever is in the best interest of your business.

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