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Definition
Deferred consideration is a portion of the purchase price in a business acquisition that is paid after completion — on a fixed timetable or contingent on future performance (an earn-out). It reduces the amount the buyer must fund on day one.
In plain terms
Instead of paying the whole price upfront, the buyer pays some now and some later. It softens the funding need and signals the seller's confidence in the business.
Why it matters for your company
Deferred consideration is a real obligation competing for future cash, so it belongs in buyout affordability sums. See funding a management buyout.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.