Payout period

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Payout period

The time period during which withdrawals from a retirement account or annuity are paid.

Payout Period

1. The period of time during which benefits on an annuity or retirement account are paid.

2. In entrepreneurship, a period of time in which cash flow is negative. This especially applies to an early part of a company's history before it has recovered start-up costs and operating expenses.

3. In stocks, dividends per share divided by earnings per share, expressed as a percentage. Stock analysts use this ratio to compute how much of a company's profits it pays in dividends, and perhaps how that compares to other, similar companies. Stockholders prefer companies that pay more in dividends.
References in periodicals archive ?
The longer elimination periods and/or lesser payout periods have a lower premium.
Large firm sales usually have smaller revenue multiples and longer payout periods than small firm sales.
To keep the cash flow of the deal positive, the transaction is more likely to have a lower multiple and longer payout period for the portion of the deal that is treated as a sale.
Shoppers receive quarterly Extra Bucks during payout periods
Limited payouts: In addition to providing lifetime benefits, annuities with limited (generally shorter) payout periods can be purchased.
All wells drilled from November 1, 2008 through December 31, 2009, and all wells drilled during each succeeding calendar year through 2016 will be treated as a separate project or payout period, creating eight (8) separate projects or payout periods.
At the time Chesapeake commences the drilling of a well during one of the payout periods, Parallel will assign to Chesapeake 100% of its leasehold interest within the subject unit or lease, reserving and retaining a 50% reversionary interest that will vest after Chesapeake recovers 150% of its costs for a particular payout period.
Among the trends in this space is the lengthening of payout periods from five years to anywhere from eight to 15 years, with 10 years as a common choice.
This is why the trend in the profession is to longer payout periods, often between eight and 15 years, with 10 years as a frequent choice.
Smaller firms usually are paid in four to six years, and acquisitions of larger firms traditionally have longer payout periods.
Larger firms traditionally receive smaller multiples and longer payout periods.
In many transactions, payout periods are worked out on the receivables and WIP, thus creating more room for a larger down payment to the seller.