RE:RE:Oncidium acquires $17M medical evaluation firmat no cost to CloudMD??? it's included in the Oncidium acquisition cost.
Example of an Earnout
Oncidium has $40 million annualized revenue run rate and $6.0 million in EBITDA (based on 14%). A potential buyer is willing to pay $68 million, but the current owner believes this undervalues the future growth prospects and asks for $100 million. To bridge the gap, the two parties can use an earnout. A compromise might be for an upfront cash payment of $30 million and 38 million common share an earnout of $32 million if sales and earnings reach $? million within a three-year window.