An earnout provision makes the purchase price (typically, some part of it) payable in the future dependent on the buyer's financial performance. Earnout provisions are contractual clauses within a purchase agreement that secure additional compensation to the seller after close.An earn-out works as a mechanism that allows the buyer to defer a portion of the purchase price until the occurrence or failure of a predetermined metric. Diversify revenue streams. 2024 was a year full of headlines, breaking news, and big stories.