earn-out
C1CEFR level
88/100Rarity: very rare
TechnicalRegister
Law noun
Deferred purchase price tied to the acquired business's future performance.
Half the price sat in an earn-out payable only if revenue hit the agreed milestones.
Business noun
A deal mechanism under which part of the purchase price is deferred and paid only if the acquired business meets agreed performance targets.
The founders accepted a lower headline price in exchange for a generous earn-out tied to revenue growth.
Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.
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