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LSDefine

Simple English definitions for legal terms

earnout agreement

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A quick definition of earnout agreement:

An earnout agreement is a type of business sale where the buyer pays a portion of the price upfront and the rest is based on how well the business does in the future. The seller usually stays involved in managing the business for a while after the sale. It's like a bet on the business's success!

A more thorough explanation:

An earnout agreement is a type of agreement used in the sale of a business. In this agreement, the buyer pays an initial amount upfront, but the final purchase price is determined by the business's future profits. The seller may also help manage the business for a period after the sale.

Let's say that John wants to sell his small business to Jane. They agree on a purchase price of $500,000, but they also include an earnout agreement. The earnout agreement states that Jane will pay John an additional $50,000 if the business's profits increase by 10% in the next year. John agrees to help manage the business for the next year to ensure its success.

In this example, the earnout agreement allows Jane to pay a lower upfront cost for the business, while also incentivizing John to help ensure the business's success in the future.

earnings yield | Easter-offerings

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triplethread
10:26
dkk are u a boy or a girl
Dkk
10:26
Wizard 101 told me I was a boy wizard.
triplethread
10:26
ok
BulbasaurNoLikeCardio
10:26
I am thinking it will be slower/quitter until after thanksgiving
snow
10:27
thread im like 90% sure im getting an R, but ive come to peace that this might be my unreasonable R for the cycle
triplethread
10:27
but snow we have the same stats. you'll be fine. i promise. if im this confident you should be too
Dkk
10:27
Only tiktok I will share cus I stay off that site.
I am sorry if you like it, but TikTok is fucking awful
LSDFan
10:28
tiktok is great
triplethread
10:28
i lub tik tok and reddit and instantgram
Dkk
10:29
Nah, lol I hate it @texas. I remember when it was music.ly too and you used to have music.ly cringe compilations.
babycat
10:29
I do not have tiktok either because it makes my brain unhappy
10:29
how come i didnt get fordham AGAIN
Yeah, shit is awful. I have friends who spend hours a day on it
m10
10:30
Sorry to hear @Eggan
BulbasaurNoLikeCardio
10:30
I think tik tok is evil and coming from a national defense background, working in PSYOP and in the intelligence community I can promise it is.
glovediedthisishismom
10:30
5318008 now look at it upside down ;)
snow
10:31
tik tok and youtube reals has fried my brain
babycat
10:31
@glovediedthisishismom: boobies!!!
so off topic but dude eggan the weather here in nyc is insane
babycat
10:31
@BulbasaurNoLikeCardio: I wonder if you know my local psyops guy
m10
10:32
@BulbasaurNoLikeCardio: Yeah but like half the general officers are compromised so we might as well just give this country to China already. The head of the JAG corps used to tell us how much he loved Tiktok and he was a 1 star. These people should be court martialed. I hope Trump follows through on that promise the most.
it was 80 degrees three days ago and now it's like pouring rain sleet and wind
babycat
10:32
@jackfrost11770: we all living the same weather. I’m abt to go to the gym
babycat
10:32
I’m listening to car seat headrest
it's the worst when the weather is this shit and there isn't even any snow like at least let it be aesthetic (although snow in nyc is the opposite of that)
snow
10:33
india ass band
10:33
checking in on Wake Forest. Y'all heard anything?
LSDFan
10:34
@m10 are you FLEP
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