Definition of earn-out in English:



  • 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.

    • ‘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.’
    • ‘They were concerned this could affect their chances of obtaining the earn-out.’
    • ‘A big chunk of any earn-out would have to be spread out beyond the end of those contracts.’
    • ‘For achieving net monthly sales above £ 130,000 up to £ 180,000, you will be paid an earn-out of 20 % of net sales.’
    • ‘A spokesman for Adaptec would not comment on when, or if, the earn-out payments would be made.’
    • ‘The employment was also clearly to allow the plaintiff and the former shareholders of PPI to work on the earn-out.’
    • ‘More tech executives are expected to lose out as earn-out clauses are renegotiated by previously booming tech firms.’
    • ‘If they were to leave following completion of the deal they would presumably lose some of those earn-out rights.’
    • ‘However, it is understood that most of the purchase price was in Agilent stock, with an earn-out period of at least one year.’
    • ‘The share buyouts are subject to lock-up and earn-out clauses that mean shares cannot be cashed in for a fixed period.’
    • ‘If the definitive agreement includes earn-out provisions, monitoring these provisions may require more of your time.’
    • ‘All were greatly enriched by earn-out payments.’
    • ‘The owners would prefer an all-cash deal and will consider a deal that features an earn-out.’
    • ‘The maximum earn-out payable is £ 250,000 (the same maximum as in the Agreement).’
    • ‘The earn-out deal specifies a minimum price of £ 4m and a maximum of £ 9m.’
    • ‘With an earn-out, you'll get additional payments after the official sale - but only if the business hits certain targets.’
    • ‘One useful tool is to formulate an earn-out period after the acquisition is completed.’
    • ‘Tricky earn-out clauses are said to be delaying the finalisation of the deal, but other factors are also at play.’