Business, Legal & Accounting Glossary
An arrangement in which sellers of a business receive additional future payment, usually based on future earnings.
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.
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This glossary post was last updated: 30th October, 2021 | 0 Views.