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Mergers and acquisitions often convey a fixed price, such as "Company A is acquiring Company B for ten million dollars." However, this price can sometimes include contingent payouts known as earn-outs. An earn-out allows sellers/shareholders of the target company (Company B) to receive additional payments if certain financial goals are met in the following years. For example, if Company A pays ten million dollars upfront, they might agree to pay an additional five hundred thousand dollars if Company B achieves a net income of at least two million dollars within a year. This results in a total potential payment exceeding the initial fixed price.