A provision written into some financial transactions whereby the seller of a business will receive additional payments based on the future performance of the business sold.
More example sentences
- Bravura will pay an initial 19.2 million to acquire Rufus with two further payments dependant on agreed earn-out thresholds.
- He will leave the agency at the end of February following the expiry of an earn-out clause.
- Instead of being profits related, your earn-out will become totally sales related.
Definition of earn-out in:
- The British & World English dictionary