| 单词 | earn-out agreement |
| 释义 | earn-out agreement earn-out agreement(contingent contract) An agreement to purchase a company in which the purchaser pays a lump sum at the time of the acquisition, with a promise to pay more (a contingent consideration) if certain criteria, usually specified earnings levels, are met for a specified number of years. This method of acquisition has been popular in ‘people’ businesses, in particular advertising agencies. The agreement provides a means of retaining the previous owners in the business, with a motivation to maintain the company’s profitability. |
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