A buyer approached you and expressed his interest in buying your firm. The buyer estimates that your firm is worth $$10$ million. However, your estimation of your firm$$s value is $$12$ million. Based on your knowledge, sales growth is most likely to be $12$ percent per year, and you expect the EBITDA to sales ratio to be $10$ percent. However, the buyer estimates that sales growth will be $10$ percent and expects the EBITDA to sales ratio to be $8$ percent. Both agree on a $6$ percent discount rate, and your firm$$s sales for the current year is $$55$ million.

To bridge the gap between you and the buyer, both agree on an earnout plan with the following terms: You will get $$5$ million now plus an earnout. The earnout is based on your firm's EBITDA for the next three years.

The earnout contract is as follows: the earnout thresholds are $$2$ million, $$4$ million, and $$6$ million, respectively, for the first, second, and third years $($i$.$e$.,$ you get paid all the EBITDA above the thresholds$).$

a$)$ What is the offer's value from the buyer$$s perspective?

b$)$ What is the offer's value from the seller$$s perspective?