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The downside of accepting shares as payment from your acquirer

October 19, 2016 |  

About this episode


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 RadioChapiewsky describes how to:

  • scrutinize the various currencies used by acquirers (cash vs. stock vs. options).
  • dress up your company to sell it.
  • use an office manager to increase the perception—and ultimately the value—of your company.
  • stimulate an unsolicited offer for your business.
  • structure your employment agreement to keep control of your employees after you sell.

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.

To hear the entire episode on iTunes, click here and don’t forget to subscribe! You can also find us on Stitcher , Soundcloud, or anywhere podcasts are found!

At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.

Check out our full M&A Glossary

About Our Guest

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.

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