Earn-Out

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Definitions
Earn-Out
Earn-Out Mergers and Acquisitions Performance Metrics Financial Agreement Purchase Payments Post-Acquisition Performance Valuation Gaps
An Earn-Out is a financial agreement used in mergers and acquisitions (M&A) where supplementary purchase payments are made to the seller contingent upon the acquired company achieving certain future financial goals, typically based on earnings, revenues, or other performance metrics.
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