Definition
Hurdle Agreement is a contractual arrangement defining minimum performance criteria that must be met for certain benefits to be received, such as bonuses, additional equity, or investment tranches.
Usage and Context
Hurdle agreements are common in businesses and investments. They ensure people meet specific goals before getting extra rewards.
Frequently asked questions
What is hurdle rate in M&A? In mergers and acquisitions, the hurdle rate is the minimum return rate needed before moving forward with a deal. It ensures the investment is worth it.

What is the ESG social strategy? The ESG social strategy involves investing in companies that score high on environmental, social, and governance factors. It`s about putting money into businesses that do good for society and the planet.

What is hurdle rate in private equity? In private equity, the hurdle rate is the least profit required before the fund can share profits with investors. It sets a performance goal.
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Benefits
Hurdle agreements motivate people to hit their targets. They link rewards directly to performance, pushing for better results.
Conclusion
Hurdle agreements are about setting clear goals and rewarding hard work. They help make sure everyone is aiming for the same outcomes.
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