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“Impostor syndrome is the voice in your head that overlooks, discounts and discredits your accomplishments.”

Jerry Colonna, author of “Reboot: Leadership and the Art of Growing Up”

We have written about the Imposter Syndrome before, but it may have become an even more prevalent concern for business professionals. Just last week, Entrepreneur magazine published a series of interviews with business leaders who have dealt with this challenge in an article titled: “10 Successful Leaders Share Their Struggles with Imposter Syndrome and How to Overcome It” (view the article). Moreover, the Imposter Syndrome is not confined to leaders at the top of the corporate chart as more than half of the employees at Amazon, Facebook, Microsoft, and Google who responded to a survey in 2018 reported that they sometimes feel they don’t deserve their job despite their accomplishments. ¹

Finally, research from the International Journal of Behavioral Science indicates that 70% of people experience imposter syndrome at one point in their lives (view the article). It is time to look again at the Imposter Syndrome, and to consider ways this problem can be dealt with effectively by businesspeople when they experience feelings of inadequacy.


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When a private equity (PE) firm buys the controlling interest in a private business, the purchase often includes an earn-out provision which calls for the owner to remain active in the business for some period of time. The use of an earn-out provision can seem like a win-win for both parties, because it allows the PE firm to buy the company for a lower purchase price and provides the business owner with the opportunity to secure a substantial additional payment if the company achieves certain agreed financial performance targets after the sale.  The problem with this rosy picture is that earn-out provisions are a common cause of disputes and litigation over whether the earn-out requirements were met after the purchase and whether the owner is entitled to the additional payment.

This post focuses on conflicts that frequently arise between PE firms and owners over earn-out provisions and suggests changes for both PE Firms and owners to consider, which may reduce or eliminate these post-purchase conflicts.  
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