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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

earnout  

Definition 1.

An arrangement in which sellers of a business receive additional future payment, usually based on future earnings.
 

Definition 2.

A contractual provision by which the seller of a business obtains additional consideration based on the business achieving certain financial goals in the future. These goals are usually stated as a percentage of gross sales or earnings.
 
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