Build-to-Buy and Option Structures
M&A Science
00:00
How to Negotiate a Startup's Option Premium
What happens if the startup blows through all their money and they don't get out to market? That does happen. There are lots of different levers you could pull, but it's almost always a negotiation. You could also put more money into the company and say, hey, we want to see a little more of this. But that's a negotiation. It's changing the deal. And then the company has the right to say, do we want to do that or not? Do we want to extend out the option further?
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