Garren Hilow on Selling for $190M, Taking Stock, and Missing His Earn-Out

When Garren Hilow helped start Abveris, he didn’t have much—just a background in sales, a co-founder with a Harvard PhD, and a stock option representing 16% of the company. 

Eight years later, he bought out his co-founder, bootstrapped the company with bank debt (collateralized by his house), and sold it in a stock deal that peaked at $190 million. 

You discover how to: 

• Buy out a majority owner without cash 

• Reposition a custom service as a product 

• Run a sales process with 12 offers and drive up the price 

• Avoid common mistakes during an earn-out 

• Spot the difference between dumb money and VC 

• Deal with burnout after an exit 

• Lose a $20M earn-out and still come out ahead 

This is an Exit Story episode of Built to Sell Radio, the podcast designed to help you punch above your weight in a negotiation to sell your business. 

Show Notes & Links

Garren’s book & website

Connect with Garren on LinkedIn

Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

About Our Guest

Garren Hilow

Garren Hilow is a seasoned entrepreneur and business strategist with a track record of leading high-growth companies through successful exits. As the CEO and founder of multiple ventures, Garren has built a reputation for identifying market opportunities, scaling operations, and driving results with clarity and conviction.

With a background rooted in both startup innovation and corporate leadership, Garren brings deep expertise in mergers and acquisitions, fundraising, and go-to-market strategy. His insights have made him a sought-after advisor and podcast guest for founders navigating the complexities of scaling and selling their businesses.