Definition of earn-out in English:


Syllabification: earn-out


  • 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.

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