Earnout
Definition:A contingent payment arrangement negotiated as part of a merger or acquisition, whereby the seller of a business is entitled to receive additional compensation, usually in the form of cash or stock, based on the achievement of specified financial or operational targets after the transaction closes. Earnouts are often used to bridge valuation gaps between buyers and sellers and align their interests in maximizing the future success of the acquired business.
To find out more about our services, please complete the form below and we'll be in touch.
