Which of the following are commonly used to close the gap between what the seller wants and what the buyer is willing to pay?
A) Consulting contracts offered to the seller
B) Earn-outs
C) Employment contracts offered to the seller
D) Giving seller rights to license a valuable technology or process
E) All of the above.

Question

Quizplus · Accepted Answer

All the options listed (A through D) are strategies commonly used to bridge the valuation gap between what a seller expects and what a buyer is willing to pay in a business transaction. These mechanisms can provide additional value to the seller, making the deal more attractive without immediately increasing the upfront cash payment from the buyer.

Which of the Following Are Commonly Used to Close the Gap