Skip to content
« Back to Glossary Index

Earnout

Definition:

A contingent payment arrangement negotiated as part of a merger or acquisition, whereby the seller of a business is entitled to receive additional compensation, usually in the form of cash or stock, based on the achievement of specified financial or operational targets after the transaction closes. Earnouts are often used to bridge valuation gaps between buyers and sellers and align their interests in maximizing the future success of the acquired business.

To find out more about our services, please complete the form below and we'll be in touch.

New York Washington DC • Toronto London
Durban  Taipei Hong Kong Seoul

Alliance Advisors is an independent advisory firm focused on Shareholder Meeting Advisory, Shareholder Engagement, Compensation, Governance & Sustainability services through our global network.

We go beyond, from development to execution of bold, client-first strategies, resulting in winning outcomes.

Back To Top