Definition of earn-out in English:

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earn-out

noun

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.
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.
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