earnouts

[US]/ˈɜːnaʊts/
[UK]/ˈɜːrnaʊts/

Translation

n.A payment arrangement in a business acquisition where part of the purchase price is contingent on future performance targets being met, converting traditional lump-sum payment into installments based on future earnings

Phrases & Collocations

earnout agreement

earnout provision

earnout payment

earnout clause

earnout mechanism

earnout structure

earnout target

earnout calculation

earnout period

meeting earnouts

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