EARN-OUT Definition

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EARN-OUT refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement.

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BEARER BOND is a fixed income security that does not have the owner's name registered on it. This type of instrument is now generally available only with maturities of one year or less because of changes in federal law.

COST-VOLUME-PROFIT ANALYSIS (CVPA) examines the behavior of total revenue, total costs and profit as changes occur in the output level, selling price and variable costs per unit or fixed costs.

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