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Podcast: My Worst Investment Ever Podcast
Episode: MJ DeMarco – Do Not Sign an Earnout When Selling Your Business
Description: BIO: MJ DeMarco is the international best-selling author of The Millionaire Fastlane, Unscripted, and the Great Rat Race Escape. He’s also the founder of Viperion Publishing and the Fastlane Business Forum.STORY: MJ sold his business in 2000 for $1.2 million. Of this, $700,000 was held in an earnout. Because of the recession, the buyer paid MJ $500,000. He put the money in tech stocks, but they imploded in just a few months. MJ lost everything he had invested.LEARNING: Never accept an earnout. “Don’t let the stock market control your wealth.”MJ DeMarco