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 ?
In conjunction, Fagerhult pays Veko an additional earnout of EUR9.
The sellers will also have the right to receive earnout payments, in an aggregate amount of up to $15 million, calculated on EBITDA and revenue of the combined water management, production testing and fluids businesses of both SwiftWater and of TETRA in the Permian Basin in respect of the period from January 1, 2018 through December 31, 2019.
AdinCube was acquired for USD 20m IN cash, shares and earnout.
1 million, including $3 million which was paid today on closing, and an additional earnout of up to $3.
The consideration also includes a potential earnout payment of up to USD137.
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.
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 provides a mechanism to tie a portion of the purchase price to future performance.
An earnout provision in a business sale refers to a transactional tool used to compensate a seller for future profits or sales.
Sigma is also entitled to an additional earnout of some EUR12.
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.