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Mergers and acquisitions often present a fixed price, like a company acquiring another for ten million dollars, but this isn't always the case. Sometimes, agreements include contingent payouts known as earn-outs. An earn-out allows the seller (shareholders of the target company) to receive additional funds if the acquired company meets specific financial goals post-acquisition. For example, an acquirer might pay ten million upfront but agree to pay an extra five hundred thousand if the target's net income reaches two million dollars within a year. Thus, the total payout could exceed the initial amount, depending on performance.