“we've had cases where the founder is like I've burned out here the keys I'm out in four weeks that doesn't really help the price then we have other cases where the founder is like I'm going to put half of my proceeds from the sale into that earnout well that founder is really putting his money with his mouth is and then of course we're able to pay more”

Reinvesting half your earnout signals conviction — and unlocks a higher price

An earnout structure where the founder reinvests half their proceeds signals real conviction and unlocks a higher headline price. Burned-out founders handing over the keys in four weeks should expect a discount — alignment between exit terms and founder intent is priced in. The willingness to stay is the proof the business has a future.