An earnout provision makes the purchase price (typically, some part of it) payable in the future dependent on the buyer's financial performance. 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.Defining the specific current assets and current liabilities to be included in any working capital calculation is critical, including specific accounts and. Additional contingent purchase price ("earn-out") has been or will be paid if certain acquisitions achieve predetermined profitability targets.