Earn Out

Earn Out definition

/əːn/ /aʊt/

What does Earn Out mean?

An arrangement whereby part of the consideration on a share or asset sale is calculated (after completion) by reference to the target company's profits and performance for a specified period following completion.

Earn Out explained

A proportion of the consideration would typically be paid on completion with the balance paid post-completion.

Variances

Earnout
Earn-out

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