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Its too late for you now, but one thing that gets specified up front sometimes is a "roulette clause". More or less, either party can make an offer to buy the s
by abraae 11y ago
Its too late for you now, but one thing that gets specified up front sometimes is a "roulette clause". More or less, either party can make an offer to buy the second party out at any price they like. The second party must either accept the offer, or buy the first party out at the same price.
Its one way to avoid the deadlock situation where one founder mentally checks out, offers no value, but refuses to be bought out at any reasonable price.
- Everhusk 11y agoIs this a common thing? Never heard it before, it is very clever though. How would you prevent a founder from bluffing though? Say founder B knows that founder A only has $X, so he offers to buy it for $X + some number. Makes it hard for founder A to keep any ownership of his company without taking out an expensive loan and paying way more than the company is worth.