Earn-out

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Earn-out

Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement.

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.
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Horizon has agreed to pay $145 million in cash upfront plus undisclosed earn-outs and milestones.
RPL Mergers is a specialist technology M/A firm formed in 2004 to advise owner-operators on exits, disposals and earn-outs.
com LLC for initial cash consideration of USD 44m plus future earn-outs.
But if they do, they will be bucking a well-established trend, where business-dam- aging earn-outs blunt the brilliance of those agency brands we all regard as high- water marks in creativity.
5 million, with earn-outs up to $25 million if it's commercially re-opened.
Area of Specialization: Pre and post acquisition valuations, due diligence and calculation of earn-outs, including in litiga Certifications/Credentials: MBA, CPA, CVA Website: www.
The boards of the two companies are supporting the transaction, which also involves the payment of potential earn-outs.
The company said that the acquisition has cost an initial USD32m in cash and that up to an additional USD5m in cash earn-outs are still on offer depending on TPACK revenue and product development milestones over the next 18 months.
Often earn-outs are used in owner-managed companies and they generally require that the sellers remain in the management of the company in question to ensure that performance targets and a smooth transition are achieved.
Earn-outs, other forms of contingent consideration, and certain acquired contingencies (assets and liabilities) are recorded at fair value as of the acquisition date.
Seller willing to finance and consider earn-ins and/or earn-outs.