In the process of buying and selling a company, a portion of the payment is often left dependent on the achievement of objectives established by both parties. This contingent deferred payment is usually called an Earn-Out.

The Earn-Out is a formula agreed upon by both companies. The goal is to adapt the final total price paid to the reality of the purchased company. To do this, it is verified that the business is working and a final payment is made, more or less substantial depending on the results obtained.

At martinsdelima, we had to face a conflict in which the buyer estimated that the Earn-Out payment was zero. However, during the period in which the additional contingent payment was to be calculated, the business had grown enormously, and the seller considered such a result unfeasible.

After conducting an exhaustive analysis of the specific clauses of the contract, the agreed formula, and, of course, the real numbers of the company, we calculated that the additional contingent payment for the seller reached a millionaire amount.