Startup Exit Strategy
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.
- A period where they can move off your technology.
- Technology code/content escrow.
- Right of first refusal and option to acquire.