Pitfalls Around Earnouts (and Why They Rarely Payout)
By George Deeb Takeaway: “The devil is in the detail, in terms of how an earnout gets written.” What Is an Earnout? An earnout is a financing arrangement for the purchase of a business in which the seller finances a portion of the purchase price, and payment of this amount is contingent on achieving a predetermined level of future […]
Funding a Start-Up With a 401(k) or IRA
By Kelly Spors Updated Feb. 13, 2007 11:59 p.m. ET Q: I’ve heard different opinions about investing IRA or 401(k) assets to fund a start-up business. Can it be done without paying taxes and penalty on the invested amount? A: Cashing out a traditional 401(k) or individual retirement account to fund a business will trigger […]