Doug Chapiewsky built CenterPoint Solutions Inc. into an Inc. 500 company with $5 million in revenue and more than $3 million in EBITDA before he sold it to Israeli-based Nice Systems.
In this episode of Built to Sell Radio, Chapiewsky describes how to:
Chapiewsky sold his company on the eve of the technology meltdown in 2000. He received less than 10% of his proceeds in cash and the rest in the form of stock and options in the acquiring company. Weeks after the sale, the acquiring company’s stock went from $100 to $12 erasing the value of Chapiewsky’s options and slicing the value of the equity he took in return for selling his company. To avoid such a large portion of your sale proceeds being paid in a currency other than cash, you want to increase the negotiation leverage you have with a buyer, which is what we do with The Value Builder System™. We’re all about shifting the balance of power from buyer to seller and ensuring you have the upper hand in a negotiation. Start by getting your Value Builder Score.
Click to Tweet: Episode 65 of #BuiltToSell Radio: The downside of accepting shares as payment from your #acquirer.
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Doug Chapiewsky has over 35 years of professional experience as the founder and sole owner of two highly successful businesses as well as an engineer and manager in a Fortune 10 company. During the first half of his career he held several engineering and management positions with AT&T Bell Laboratories. Having reached the threshold of opportunities provided in a large corporate environment, he established his own company in 1993. Utilizing strictly his own financial resources, Chapiewsky built a telecommunications software company from the ground up. The company showed profits during every single quarter of operation in a very demanding, turbulent environment.