Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,331,991 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Earnout

   Also found in: Legal, Wikipedia 0.01 sec.
Earn-Out
In an acquisition, an additional payment made to the acquired company's former owner(s) in the event that certain earnings are met. For example, a company may acquire another for $75 million, with an additional $10 million in cash and/or stock if the acquired company's earnings outperform expectations by a certain percentage. Earn-outs are based on the acquired company's potential future earnings.
earnout
A contingency component of an acquisition agreement in which the acquiring company agrees to additional payments in the event certain performance-based goals are achieved. For example, Sylvan Learning Systems in 1995 acquired Drake Prometric for $20 million in cash plus 5.9 million restricted Sylvan common shares. The deal included an additional 2.7 million Sylvan shares to be released to the sellers in the event stipulated revenue goals were met through 1998.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
15 million holdback for tenant improvements and leasing commissions to address the lease up of vacant space and tenant roll during the loan term, and an earnout of $5.
GE hits strike zone with $71m on book acquisition loan by Real Estate Weekly
5% of Data Media and Retail, with a three-year earnout to purchase the remaining 37.
Daily Mail acquires two online properties by Internet Business News
Only $75,000 of that price was paid in cash, with the remainder in earnout payments, stock options and restricted shares of stock.
Leveraging smallcap stock status: an example of the benefits of using ... by Ismail, Adam / Nutraceuticals World
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.