Learn the Language of Earnouts

By: Edward Hamilton

Get Access to Our Contingent Consideration Webcast and Resource Center

Financial reporting professionals have an obligation to clearly communicate earnout values and valuation approaches to company management, boards of directors, internal and external auditors, and other members of the deal team.

VRC’s recorded webcast and resource center tools illustrate earnout structures to help you understand:

  • What is an earnout and why it is used
  • Why and when differing valuation approaches are used
  • The math and logic behind the most common approaches including Black Scholes and Monte Carlo

A contingent consideration structure bridges the valuation gap and is commonly based on the achievement of technical or financial milestones. Download the webcast today and you’ll also get additional best practice resources from VRC on earnouts.