earnout

Definition

An arrangement in which sellers of a business receive additional future payment, usually based on future earnings.

Use earnout in a sentence

You should always try to make sure that you do everything that you agreed to when involved in an earnout.

​ Was this Helpful? YES  NO 7 people found this helpful.

The agreed upon selling price was less than planned but there is an additional earnout at the end of each year.

​ Was this Helpful? YES  NO 9 people found this helpful.

The earnout was the last item to be negotiated as it was obvious the business would continue to generate profits.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
earnings-related pension earn-outs