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Hmmm. That's interesting (breakup-fee). Is that market or would you say it's an exception for startups in acqui-hire situations? My only reason why I would tak
by man_bear_pig 13y ago
Hmmm. That's interesting (breakup-fee). Is that market or would you say it's an exception for startups in acqui-hire situations?
My only reason why I would take this a bit more seriously is that I know the following:
a) a friend of mine who plays in the similar space - she has had talks with them for couple of months earlier this year about starting something similar for them before her business got got acquired by someone else. She told me that they seemed to be pretty serious and have been contemplating for a while how to get it started.
b) there's also not many players who really understand that market and/or are in the market.
c) they have precedence of similar behavior in different part of their business within the past 6 months (early stage acquisitions - one was series a then 6 months acquired but they're definitely on a talent or talent/hire acquisition spree).
Thank you so much for your advice!
- mst 13y agoRather than a break up fee, perhaps it's worth charging them consultancy rates for explaining what you're doing to them - after all, they can't unhear that information so why not charge it at rates matching the value to them in their conversations with the next company if you end up not coming tot terms?
- caw 13y agoI would think the standard would be a breakup fee. The fee can be orders of magnitudes larger than any time involved (see AT&T & TMobile acquisition)