Close X

Earnout

  • Term

    Main definition

  • Earnout

    An arrangement (usually included in a definitive acquisition agreement) under which the seller(s) of a business is(are) entitled to receive addition future payments (of the nature of purchase price consideration) if certain financial performance metrics are achieved at (or as of periods ending at) specified post-closing dates (typical metrics include revenues, net income or EBIT).

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions about business law and corporate compliance matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.