earn out

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earn out

verb bring to a zero balance, bring up to date, defray the expenses, lend, loan, paid back, pay back after an advance, repayment, used upGenerally: indemnify, recoupment, reimburse, remit
References in periodicals archive ?
Under the asset purchase agreement, PHCG will acquire PDI's Commercial Services business (CSO) for an initial cash payment at closing of up to approximately $33 million, $7 million of which is contingent upon securing certain CSO client commitments, plus an earnout payment based upon 2016 CSO revenue.
The issue that arises in these scenarios is whether the earnout is a contingent purchase price or compensation to the seller and, in certain circumstances, subject to bifurcation as both a contingent purchase price and compensation.
The purchase price includes the payment of approximately USD$79 million at closing, $33 million in deferred payments in September 2014, and on target earnout consideration of USD $21 million, with a minimum earnout consideration of USD $14 million and a maximum earnout consideration of USD$28 million.
When there is a difference in valuation but both parties desire to get the deal done, an earnout may be used to bridge the gap.
View A, the liability view, is the view that the transaction premise is based on a transfer of a contingent consideration liability to a counterparty such as a bank or an insurance company, rather than based on the amount that the selling shareholders would be willing to receive in exchange for the earnout.
An earnout provision in a business sale refers to a transactional tool used to compensate a seller for future profits or sales.
The primary subject matter of this case concerns the cross-cultural negotiation of an earnout agreement between Denshi Global Holdings, a publicly-traded Japanese company, and Informatica de Sistemas, S.
The three-year loan includes a $2 million earnout available if the property meets specified performance criteria.
conclusion of the earnout performance of Network Partners.
7 million in debt, up to $4 million in performance-based earnout payments, and management retention agreements of up to $4.
If the acquired company meets its revenue or profit targets, the earnout will provide additional post-acquisition consideration.
The purchase price includes cash and possible future earnout opportunities, the amounts of which were not disclosed.