What does earnout mean?
Definitions for earnout
earnout
This dictionary definitions page includes all the possible meanings, example usage and translations of the word earnout.
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Wiktionary
earnoutnoun
A formula by which the management of a company earns a share of the company's share capital by achieving results above pre-determined levels.
Wikidata
Earnout
Earn out is a variable part of price paid for a company. Price paid for a company, i.e. for owning the company's equity can be either fixed or variable. The most common and basic part of the fixed amount is cash at closing. When one buys publicly listed shares, a fixed price paid in cash at closing is usually the only possible. On the other hand, in private transaction, a more complicated way of price structure is possible to negotiate. A part of price that is not fixed, but variable, is based on a pre-agreed formula using variables to be known only in the future. This variable part is commonly referred to as an Earn-out. The most common variable used are future profits, i.e. part of the price paid will be directly determined based on the future profits the company achieves and paid only at that future time.
Numerology
Chaldean Numerology
The numerical value of earnout in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of earnout in Pythagorean Numerology is: 4
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"earnout." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/earnout>.
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