4 Nov 2018

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What does "use his share of the proceeds to take a stake in the acquirer." mean?
Especially what does "share of the proceeds" mean?

In fact, Young started a string of businesses after graduating from college in 1976. He first rented out typewriters from an office outside of Toronto that happened to be next-door to a factory farm raising fishing worms. Meanwhile, his college friends were beginning careers as accountants and lawyers at large firms. "My friends were not overly impressed with my career choices back then," he says.

He transitioned to leasing computers by launching Vernon Computer Rentals in 1984. After struggling financially during the 1989 recession, Young sold the company to Greyvest Capital for roughly $20 million, from which he got a cut of about $4 million as the CEO, he says. But, the deal called for Young to work at Greyvest and use his share of the proceeds to take a stake in the acquirer. Unfortunately, only months after the deal closed, Greyvest found itself in "serious financial distress" and the company's stock declined dramatically, leaving Young with a stake in the company that was practically worthless, he says.

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