Earn-out: Difference between revisions
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Latest revision as of 20:34, 8 October 2022
Business sale and purchase.
An earn-out is an arrangement under which all or part of the purchase price on the sale and purchase of a business is calculated by reference to the future performance of the business being purchased.
Earn-outs are commonly used as a management incentive where owner-managed businesses are sold and the managers continue to work in the business for an agreed period following the sale.
