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	<title>Comments on: Management Buy Outs &#8211; MBO&#8217;s and &#8216;How to Pay&#8217; for them&#8230;</title>
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	<link>https://supplymybusiness.co.uk/blog/management-buy-outs-mbos-and-how-to-pay-for-them/</link>
	<description>Where businesses in Kent go to do business.</description>
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		<title>By: John Mather</title>
		<link>https://supplymybusiness.co.uk/blog/management-buy-outs-mbos-and-how-to-pay-for-them/#comment-29876</link>
		<dc:creator><![CDATA[John Mather]]></dc:creator>
		<pubDate>Thu, 16 Apr 2020 15:22:22 +0000</pubDate>
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		<description><![CDATA[What you call ‘deferred consideration’ l call ‘earn out’ and It basically protects the purchaser for not doing the job the seller should do before they sell it, which is to redesign the business, operationally, to Run / operate entirely without them before they sell it.

Few owners like running a business and then ceding power gradually to evolve into a business that operates entirely without their input prior to sale. Most owners want a sale and to exit the business, but most new owners want the opposite, to retain the old owners, for a defined time period, to ensure they haven’t done Due Diligence properly and haven’t bought a ‘Lemon‘, with lots of Undeclared risks and liabilities, mutinous staff or disgruntled customer base.

It’s entirely the exiting owners fault if they don’t organise the business first, to operate without their daily input, then wonder why they get a 2 year lock-in as part of the sale. Quite solvable Deferred Considerations, it just needs more preparation prior to sale.]]></description>
		<content:encoded><![CDATA[<p>What you call ‘deferred consideration’ l call ‘earn out’ and It basically protects the purchaser for not doing the job the seller should do before they sell it, which is to redesign the business, operationally, to Run / operate entirely without them before they sell it.</p>
<p>Few owners like running a business and then ceding power gradually to evolve into a business that operates entirely without their input prior to sale. Most owners want a sale and to exit the business, but most new owners want the opposite, to retain the old owners, for a defined time period, to ensure they haven’t done Due Diligence properly and haven’t bought a ‘Lemon‘, with lots of Undeclared risks and liabilities, mutinous staff or disgruntled customer base.</p>
<p>It’s entirely the exiting owners fault if they don’t organise the business first, to operate without their daily input, then wonder why they get a 2 year lock-in as part of the sale. Quite solvable Deferred Considerations, it just needs more preparation prior to sale.</p>
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