Earn-Outs Can Bridge Buyers’ and Sellers’ Expectations in an Uncertain Market

This article explains why dealerships should seriously consider using contingent consideration, or earn-outs, to bridge the gap between buyer and seller expectations that could otherwise crash a deal. Despite vehicles sales that are stagnant or on the decline, optimistic buyers are clinging to their exit price expectations in the face of would-be buyers offering lower prices based on expectations that sales will deteriorate. The article describes how an earn-out can satisfy both parties and save a dealership sales transaction.