Applying Lean Analytics to Performance Metrics in M&A Earnouts
Ever since the dawn of internet, a new wave of fast-growing software companies has emerged. The M&A scholars have struggled to find appropriate valuation mechanisms for unprofitable companies with ultra-high revenue growth. To overcome the uncertain future, a contractual provision called earnout is often used. An earnout is a contractual provision in a M&A-deal that states the seller of th