💡 Creative Financing
Earn-Out Financing
A business acquisition structure where part of the purchase price is contingent on the business achieving future performance targets.
Common Uses
- Business acquisitions with uncertain projections
- Bridging valuation gaps
- Aligning seller and buyer interests
General Characteristics
- Portion of price paid over time
- Tied to revenue or profit targets
- Defined measurement period
Potential Provider Types
- Business buyers
- Private equity firms
- Acquisition financiers
Important Considerations
- Performance metric definitions
- Earn-out period and caps
- Operational control during earn-out
This information is general and educational only. Eligibility, rates, fees, and terms vary by provider and are determined solely by the provider. Trio does not assess whether you personally qualify for any financing.
Trio Marketplace is not a financial institution, lender, mortgage brokerage or financial advisor. Trio does not provide, approve, arrange or guarantee financing. Financing products and services are provided by independent third-party providers. Eligibility, rates, fees, terms and approval decisions are determined by the applicable provider.