▲ 0 r/private_equity
True Up Payment Calc
My professional services firm was acquired by PE. Our individual distributions as partners for the purchase price was based on managed billings for 2022-2025. The true up payment at the end of this year is based on managed billings for the period of 2023-2026. To me, the purpose of the true up should be to reward current production rather than historical. I want to bring up to my partners the idea of weighting recent years more heavily. Is this a reasonable approach to bring up? Has anyone had experience with this?
u/IndependentCarry5992 — 13 days ago