Startup Exit Strategy

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There is risk assuming that a large vendor will buy you while that same large vendor’s competitors are using your technology service or product.

Example, Symantec, Trend Micro, Palo Alto Networks, and HPE are all customers of your technology. Palo Alto Networks decides that they want to acquire you.

HPE is a competitor to Palo Alto Networks. After the acquisition closes, a product from Palo Alto Networks is now in HPE software, including exposure to all HPE enterprise customers (experience).

This will trigger a competitor acquisition clause in your agreement with HPE. It will bring HPE into the acquisition discussions and require one or more options.

  1. A period where they can move off your technology.
  2. Technology code/content escrow.
  3. Right of first refusal and option to acquire.

I provide expert consulting services in market research, program management, cybersecurity, data center management, Generative AI, and backup and recovery systems.

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