Publication | BVR Business Valuation Update 24:5
Earnouts and the Monte Carlo Method: Practice Tips for Implementation
Erica Wilson and Vincent Biemans
May 2018
Erica Wilson and Vincent Biemans write about the valuation of earnouts, which can be a vital tool in bringing M&A negotiations to a successful closing; but assigning a value to said earnouts can be challenging. They provide practice tips for implementing a Monte Carlo method analysis to value earnout rights and obligations.