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Synerger

Free tool · 4 minutes

Earn-out scenario calculator

Put in the terms being discussed: the upfront price, yearly targets, the most the earn-out can pay and where payment starts. See the payout year by year under three scenarios you choose.

Free tool
An indicative answer, in about 4 minutes.
Works from
Only what you enter
Result
Indicative, straight away
Sign up
None needed

Send the result to an adviser if you want to talk it through

The tool

Synerger · Earn-out scenario calculator

₹ cr

Earn-out period

₹ cr
₹ cr
₹ cr
₹ cr
% of target

Between threshold and target

% of max

100 means no extra for beating target.

Scenarios, as % of target each year

%
%
%

Total paid to the seller

₹40 cr

Downside · 70%

₹55 cr

Base · 100%

₹58 cr

Upside · 120%

UpfrontEarn-out
ScenarioYear 1Year 2Year 3Earn-out
Downside0% of maximum₹0 crRevenue ₹42 cr₹0 crRevenue ₹49 cr₹0 crRevenue ₹56 cr₹0 cr
Base100% of maximum₹5 crRevenue ₹60 cr₹5 crRevenue ₹70 cr₹5 crRevenue ₹80 cr₹15 cr
Upside120% of maximum₹6 crRevenue ₹72 cr₹6 crRevenue ₹84 cr₹6 crRevenue ₹96 cr₹18 cr

Indicative, based only on what you enter. Agree the definitions with your CA and lawyer.

Send me this and talk to someone

We send your terms and scenarios to an adviser, who replies with a copy and the questions worth asking about the definitions before you sign.

How it works

What is behind the result.

How payouts are worked out

For each year, the achieved figure is compared with the target. Below the threshold nothing is paid. Between the threshold and the target, the payout rises in a straight line, or pays in full only at target if you choose all or nothing. Above target, the payout can rise further up to the cap you set.

What the scenarios are

Each scenario is a percentage of target, such as 70, 100 and 120 percent, applied to every year. Change them to test the outcomes you think are realistic.

What it leaves out

Tax, the time value of money, catch up clauses, accounting definitions and disputes are not modelled.

Next step

Tell us what you are planning. We will tell you how we would run it.

A thirty minute confidential call with an adviser. You leave with the steps, the documents you will need and where the risks usually sit.