The multiple was fair. Half the money was contingent.

Two businesses with identical earnings can be sold for very different money, and the gap rarely appears where owners look for it.

By Steve 5 min read
Abstract bridge artwork for The multiple was fair. Half the money was contingent.

Owners preparing to sell tend to fixate on one number: the multiple. It is the number in the trade press, the number the broker leads with, the number a peer mentions at a conference. So when a deal comes in at a multiple that looks broadly in line with the market, it feels like the negotiation went well. Then the offer arrives in full. A portion is payable at completion. A portion is deferred over eighteen or twenty-four months. A portion sits behind an earn-out tied to revenue retention. Some…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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