How to Negotiate a Startup Deal Like a Pro

So how to structure the best deal? How do you make sure that you're getting the best of both worlds and how do you negotiate these things? Well, you want to negotiate a strong cash percentage from the get go. You can aim for at least 70% upfront. You can cap the earn out period, meaning it's not an earn out that's going to extend for four or five years or something ridiculous. Maybe it's 1224 months max, depending on your limit to risk. And then setting clear performance metrics. An earn out makes no sense if the objectives are just you can't reach them, they're too high in the sky. You need to define revenue and profit targets so there's no confusion on what triggers these earnings out payments.