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Mergers and acquisitions often involve more than just a fixed price, with earn-outs being a common form of contingent payout. Earn-outs are agreements that allow the seller of a company to receive additional money if certain financial goals are met in the future. For example, a buyer may pay $10 million upfront for a company but agree to pay an additional $500,000 if the company's net income reaches a certain level in the next year. Earn-outs are designed to align the interests of the buyer and seller and ensure the success of the acquisition.