Earnout, or earn-out, is a pricing structure in mergers and acquisitions in which the sellers must "earn" part of the purchase price based on the performance of the business following the acquisition. Earnouts are often employed when the buyer(s) and seller(s) disagree about the expected growth and future performance of the target company.
Earnout, or earn-out, is a pricing structure in mergers and acquisitions in which the sellers must "earn" part of the purchase price based on the performance of the business following the acquisition. Earnouts are often employed when the buyer(s) and seller(s) disagree about the expected growth and future performance of the target company.
Source: Wikipedia "Earnout" · CC BY-SA 4.0
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