acquisitionintermediate
Earnout
Future payment based on post-close performance.
What is Earnout?
An earnout pays the seller some money later if the business hits agreed targets after closing. It can bridge valuation gaps, but it creates complexity and potential disputes.
In Vibe Coding
For AI startup deals with uncertain retention or model-cost risk, earnouts can reduce buyer risk but require clear metrics and control terms.
Example
A seller gets $50,000 at close and another $25,000 if MRR stays above $8,000 for six months.
Why this matters
This matters because Earnout appears repeatedly when building, deploying, debugging, or connecting services in vibe coding workflows.
When you'll hit this in practice
You will usually run into Earnout when working on How to Value a SaaS Business.