Valuation Principles and Working with Earnouts

‍“During negotiations, the seller would want the earnout to be based on revenue, as it's the most controllable number, while buyers would prefer an EBITDA-based earnout since it's closer to value.” - PJ Patel

Valuation is a fundamental process that helps determine the true worth of a company, providing a solid foundation for negotiations between parties. But valuations are not always objective, and there are a lot of factors that can impact them.

In this webinar, PJ Patel, Co-CEO & Senior Managing Director at Valuation Research Corporation (VRC), discusses current valuation trends and working with earnouts.