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hi this is Wayne Zell host of blueprint for wealth and founder and managing member of Zell law in Reston Virginia todays video blog is an excerpt from my new book your multi-million dollar exit the entrepreneurs business succession planner due out in early 2023 so I hope you enjoy this excerpt and stay tuned for the book today were going to talk about retention bonuses a bonus thats given to an employee for staying on with a company after its sold many deals involve retention bonuses theyre offered to key employees who are critical to the future success of the business they become even more important if the seller is subject to an earn out meaning a payout based on the performance of the company after the closing of the sale so keeping your key employees involved after the closing is really important so you want to give them an incentive to do so if a key employee leaves during the earn out period the period that the earn out is measured this performance bonus for the whole comp
