I agree w/ you on this.
Complicated earnout arrangements aren't something we're interested in.
We're interested in taking over businesses and using our skillset (marketing for me / software for my partner) to unlock value in the business
Complicated earnout arrangements aren't something we're interested in.
We're interested in taking over businesses and using our skillset (marketing for me / software for my partner) to unlock value in the business
That said, if the arrangement can be structured to be fair to both parties this sounds like a great deal.
One particular thing I’d warn techies about are “business guys” asking for an ever longer list of uncompensated enhancements, only after which they put in their effort. If anyone suggests this — run. Both sides need skin in the game.