Earnout

Business, Legal & Accounting Glossary

Definition: Earnout


Earnout

Quick Summary of Earnout


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




Examples of Earnout in a sentence


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

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

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


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/earnout/
Modern Language Association (MLA):
Earnout. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/earnout/.
Chicago Manual of Style (CMS):
Earnout. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/earnout/ (accessed: March 29, 2024).
American Psychological Association (APA):
Earnout. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/earnout/

Definition Sources


Definitions for Earnout are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.