Earn‑outs are supposed to bridge valuation gaps. In practice, they often create them. A recent North Carolina Business Court decision, Child Care Inc. v. LJ Schools (Carolina), Inc., 2026 NCBC 8, is ...
• Earn-outs are increasingly tied to post-closing EBITDA performance rather than revenue alone • Buyers are placing greater emphasis on associate retention and leadership continuity Taken together, ...
Until recently, principal advisors selling their firms were happy to include anticipated future market returns when modelling revenue-based earn-outs. After all, markets had quickly shrugged off ...