You Sold. You're Coasting. Your Earnout Is Bleeding Out. #businessexit #mergersandacquisitions
16 Jun 2026 · 0 min
0:16
In this brief monologue, the speaker paints a vivid scenario where a founder, after selling his company, becomes complacent—relaxing on a beach while his earnout and rollover equity silently diminish. The speaker explains that the earnout structure, intended to keep the founder motivated, can instead penalize him for disengagement. Although the founder may not yet notice the loss, the buyer already senses the problem and may act to protect their investment, leading to a gradual erosion of the founder’s post‑sale compensation.
