{
  "title": "What is an earn-out? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-an-earn-out/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-22",
  "updated": "2026-10-22",
  "section": "Glossary",
  "keyword": "Earn-out",
  "short_answer": "An earn-out is a part of the purchase price that the buyer pays later, and only if the business reaches targets agreed in the purchase agreement, such as revenue or profit over one to three years. It bridges the gap when the seller believes the business is worth more than the buyer will pay today.",
  "facts": {
    "1": [
      "$2,400,000",
      "$400,000",
      "$80,000",
      "$80,000",
      "$80,000"
    ],
    "2": [
      "$2,900,000",
      "$900,000",
      "$180,000",
      "$180,000",
      "$260,000"
    ],
    "3": [
      "$3,100,000",
      "$1,100,000",
      "$220,000",
      "$40,000",
      "$300,000"
    ]
  },
  "sources": [
    "https://www.investopedia.com/terms/e/earnout.asp",
    "https://www.sba.gov/funding-programs/loans/7a-loans"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}