Words / E / Business

earnout

noun/ˈɜːrnaʊt/

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

Deferred payment tied to the acquired business hitting future targets.

Half the price is an earnout, payable only if they clear eight million in bookings.

Topic: Negotiation in Business English

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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More business words: Negotiation