Most earn-outs exist for one reason: the buyer is scared the revenue walks out the door with you.
In this week’s Built to Sell Radio, Dr. Michael Filosi explains how he removed that fear. He bought a beat-up two-chair dental practice no one wanted, grew it into a 10-chair clinic, and then did something almost unheard of in dentistry: he got 100% of his cash at closing.
The core move wasn’t a clever negotiation trick. It was operational. Filosi gradually tapered off his own production — four days on the tools, then three, then two, then zero — only stepping back each time the practice could absorb the work without jeopardizing cash flow. By the time he sold, the business didn’t rely on him, and it didn’t rely on any one clinician either.
In this episode, you’ll learn how to:
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Spot the fork in the road where your income is high, but your upside is capped
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Feather back your personal involvement without creating a cash crunch
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Transfer customer trust from the owner to the company
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Reduce key-person risk so a buyer doesn’t need an earn-out for “protection.”
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Create competitive tension with a short, targeted buyer list
If you’ve ever thought, “I’d love to sell, but buyers will never give me all cash up front,” this one will change your view.
Quote of the Week
I just gradually reduced my time by a day a week. So, starting off by doing four days a week clinical then to three and then to two. And after that, the next stop was zero.
Deals
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VehicleCare, an AI-powered platform that connects vehicle owners with repair shops by aggregating workshops, pricing repairs, and streamlining booking, was sold to Roadzen (RDZN) for $277 million. In 2025, VehicleCare generated approximately $10 million in revenue, implying a valuation of about 27x revenue.
