A business owner sold their business and the negotiations involved how much would be paid after the close of the transaction and how much would be based on the future performance of the company. For tax and litigation reasons, Arxis was contacted in this particular case to value the earnout provision. The seller needed to know the fair market value of the potential earnout cash flow as of the date of sale.
Read the entire case study at http://chforensics.com/case-studies/business-valuation/, Case #4.
