The Earnout Explained: What It Is and Why It Matters in Healthcare M&A
In healthcare M&A, the purchase price and the amount a seller actually walks away with on closing day are not always the same thing. In today's market especially, a growing portion of that number may not arrive at closing. It arrives later, and only if certain conditions are met. That deferred piece is called an earnout. And if you are a healthcare practice owner considering a sale, understanding how earnouts work is one of the most important things you can do before signing anything. We...