- Dec 10, 2015
- 631
- 561
My wife once worked for a dentist who decided to form a dental HMO. He offer his employees
the opportunity to purchase 25,000 shares for $2500. About 10 years later he got into a pissing match with his partner. Each wanted to take control and I was contacted by said partner who offered to buy
my shares for $7,500. Since the dentist who my wife worked for was also a friend I wouldn't sell.
A week later my wife's old boss showed up at our house and wanted my proxy for the upcoming
fight. I did give it to him and for the next 10 years I never gave it any thought. Then one day he called me and told me that the company was being sold to a large insurance company at a price of $ 13.25 a share. The deal was structured so that we received $32,500 in cash and the balance in stock of the purchasing company.
We held onto the stock long enough to receive a quarterly dividend and then sold it. We used to proceeds to pay off our house. In hind sight I should have asked for an option of another 100,000 shares at the 30 cents per share that I was offered for giving him my proxy. I am sure he would have done it as he had the right
to some 1.5 million shares.
the opportunity to purchase 25,000 shares for $2500. About 10 years later he got into a pissing match with his partner. Each wanted to take control and I was contacted by said partner who offered to buy
my shares for $7,500. Since the dentist who my wife worked for was also a friend I wouldn't sell.
A week later my wife's old boss showed up at our house and wanted my proxy for the upcoming
fight. I did give it to him and for the next 10 years I never gave it any thought. Then one day he called me and told me that the company was being sold to a large insurance company at a price of $ 13.25 a share. The deal was structured so that we received $32,500 in cash and the balance in stock of the purchasing company.
We held onto the stock long enough to receive a quarterly dividend and then sold it. We used to proceeds to pay off our house. In hind sight I should have asked for an option of another 100,000 shares at the 30 cents per share that I was offered for giving him my proxy. I am sure he would have done it as he had the right
to some 1.5 million shares.
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