Earnback Period

Definition

The time required for an investor to recover their initial investment from the cash flows generated by the acquired business or asset. Earnback period is a practical measure of investment risk, and for intangible-heavy acquisitions, it reflects how quickly acquired intangible assets begin generating measurable returns.

Related Terms

Earnout EBITDA EBITDA Margin Economic Obsolescence Economic Value Added (EVA)

Put this knowledge to work

Use Opagio's free tools to measure and grow the intangible assets that drive your business value.