Earn-Out

Earn-Out is a future payment that depends on the acquired business achieving agreed performance targets after closing.

What Does Earn-Out Mean?

A future payment that depends on the acquired business achieving agreed performance targets after closing.

Why Is Earn-Out Important When Selling an Online Business?

This term can affect how buyers evaluate risk, value, transferability, payment structure, or the practical completion of an online business acquisition. Founders should understand it before entering negotiations or signing transaction documents.

Related Terms

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