earnoutn.
/ˈəːnaʊt/, U.S. /ˈərnˌaʊt/ Finance.
A contractual provision whereby the seller of a business receives a further payment after sale (often viewed as the remainder of the sale price) if the business achieves specified levels of future performance; (also) the payout so negotiated.
ΘΚΠ
society > trade and finance > money > sum of money > [noun] > lump sum > paid as compensation
payout1904
lumpers1960
earnout1971
1971 J. A. Yeakel Earnout Business Combinations (Ph.D thesis, Univ. Florida) p. x [Those] utilizing earnouts most frequently were those commonly known as conglomerates in the financial press.
1990 Times 21 Apr. 19/4 FKB had almost £60 million in deferred earn-outs for which it could become potentially liable.
1993 Accountancy Oct. 29/3 We..concluded that the earn-out they had negotiated before acquisition was not going to be achieved using the strategy they were following.
2002 S. Gabehart & R. Brinkley Business Valuation Bk. v. 135 Earnouts are fairly common when a business has tremendous potential beyond its current operating performance and the seller seeks compensation for this upside in earnings.
2007 J. Laabs Business Sale Syst. x. 159 An earn-out is a good compromise that alleviates the fears of the buyer.
This entry has been updated (OED Third Edition, March 2015; most recently modified version published online March 2022).
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n.1971- to have a pig of the worse pannier
- to have a plenty on one's plate
- to have a point
- to have a poke at
- to have a pop at
- to have a pot in the pate
- to have a price on one's head
- to have a problem with
- to have a pudding in the oven
- to have a pull of
- to have a pull on
- to have a pull over
- to have a punt
- to have a punt around
- to have a quick study
- to have a recourse to
- to have a regard to
- to have a respect to
- to have a right to
- to have a right to do something
- to have a rod at one's girdle
- to have a rod in stale
- to have a rod under one's girdle
- to have a roll on
- to have a rough ride