a contractual arrangement in which the purchase price is stated in terms of a minimum, but you (the seller) will be entitled to more money if the business reaches certain financial goals in the future
a method of compensating a seller based on the future earnings of a company
The portion of the purchase price that is contingent on the future performance of the business. It is payable to the seller after certain predefined levels of sales or income are achieved in the year(s) after acquisition.
A term used to describe a method of structuring a purchase and sale transaction whereby the quantum of the purchase price is established in part by the future performance of the business being acquired, and a portion of the purchase price is conveyed or paid at a specified date(s) subsequent to the closing of the transaction.
a contractual arrangement in which the purchase price is stated in terms of a minimum, and the buyer of the business agrees to make future payments to the seller based on the achievement of predefined financial goals after the closing
A deal structure element normally employed by a buyer to reduce Goodwill. It permits the seller to reap the rewards of an indicated future earnings stream.