This is a complex issue, and several factors and variables must be taken into consideration to properly assess the impact a change in employment rates may have on the value of your business. Factors and considerations to keep in mind: High unemployment rates mean more people are unemployed and are potentially looking to buy a small business. This is a significant factor in the sale of small businesses. If you have a small business, a high unemployment rate means there are many more buyers in the marketplace who may be willing to buy a job (i.e., your business). The majority...

In the complex world of buying and selling a business, coming to an agreement on the proper price for a business can be difficult. An earnout is one element that may be a factor, but it is a complex element. Earnouts are difficult to administer and are prone to litigation. You should give careful consideration to an earnout before you agree to one. What is an Earnout? An earnout is a useful tool in mergers & acquisitions and is commonly used by businesses in a variety of industries. An earnout is an arrangement where the buyer pays the seller additional...