What Is An Earnout
GillAgency
DECEMBER 18, 2022
An earnout is a provision in a contract that allows the seller of a business to receive additional payments based on the future performance of the business. This type of arrangement is often used in mergers and acquisitions to bridge the gap between the buyer’s and seller’s expectations of the value of the business. The earnout period typically lasts for a set number of years after the sale of the business, during which the seller continues to be involved in the business and is responsible for a
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