If you’re going to sell a business today, there’s a very high likelihood, depending on the type of business and the risks involved, that the buyer will want to pay some portion of the purchase price as an earn-out. An earn-out is essentially a portion of the purchase price, paid in the future, based on the performance of the company and determined using some previously agreed upon formula. Earn-outs are important to bridge the valuation gap between the buyer and the seller. In this podcast Gower Idrees, CEO of RareBrain, offers insights structuring earn-outs when selling a company.