Definitions

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • n. A formula by which the management of a company earns a share of the company's share capital by achieving results above pre-determined levels.

Etymologies

from Wiktionary, Creative Commons Attribution/Share-Alike License

earn +‎ out

Examples

  • It sounds like TheStreet is keeping you on an earnout, which is good news for StockPickr.

    Stockpickr Acquired By TheStreet.com

  • The purchase price for the assets is approximately $4.6 million, plus an additional "earnout," which may bring the total amount to approximately $8 million.

    The Earth Times Online Newspaper

  • Most prerecession deals included some kind of earnout provision that delayed payment of a portion of the purchase price-up to 20 percent for one to three years.

    BusinessWeek.com --

  • Commtouch is expected to pay $4.6 million in cash and an additional "earnout" contingent upon the achievement of certain revenue milestones through December 31, 2011, which may bring the total amount to approximately $8 million.

    Turk.internet.com

  • According to TechCrunch, Path turned down a $100 million offer from Google, with an earnout of another $25 million to be paid out over four years.

    See The Company That Rejected Google's $100 Million Offer

  • Terms of the deal weren't disclosed but a person familiar with the matter says the pact includes some cash and an earnout with financial targets for 72andSunny, which could push the purchase price over $20 million.

    MDC Adds to Its Creative Arsenal

  • The website All Things D, which like The Wall Street Journal is owned by News Corp. , reported Tuesday that Google has offered $5.3 billion for Groupon, with a $700 million earnout.

    Google in Talks to Buy Deals Site Groupon

  • Yahoo Stock Component Value (% upfront vs earnout, vest + options vs stock etc) = Total Price Paid.

    Archive 2006-01-01

  • In phone calls you make in various states of undress interchange the word scrip, script, equity, stock, pscyhed, cash and stock, earnout, and synergy but minimise use of terms cash and upfront.

    Archive 2006-06-01

  • Another structure expected to see a resurgence is the "earnout."

    The New Deal: M&A Game Shifts

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