undefined | Better HN

0 pointsISL5y ago0 comments

One can demand such promises from the acquirer in the form of a contract that states, in effect, this:

a) If acquirer does X, the seller, Y, has the option to repurchase the company for $1. b) Any future acquirer must agree to the same contract. If it does not, Y must be extended the option to repurchase the company for $1 before the sale.

I don't think anything less could constitute a true promise that the acquirer would avoid X.

0 comments

monadic25y ago

Contracts are only binding up to a certain amount of capital. You can only make the violator bleed so much.... i don't see contracts as threats to any of these large corporations.

IncRnd5y ago

That's trivial to get around. X can dump liabilities into the company, and Y would never reacquire it.

colechristensen5y ago

And that is trivial to get around, instead of a $1 clawback for the company, a $1 clawback for all acquired IP, trademarks, etc including any related developed under the same or derivative marks and companies.

IncRnd5y ago

That's closer to what I've done, but in practice that also lowers the value of the company. There is a sweet spot you have to hit of giving up control. Just because you ask for something doesn't mean you will get it. In fact, you normally don't have the advantage in these types of sales, so you don't get to specify these things.

1 more reply

j / k navigate · click thread line to collapse

0 comments

monadic25y ago

Contracts are only binding up to a certain amount of capital. You can only make the violator bleed so much.... i don't see contracts as threats to any of these large corporations.

IncRnd5y ago

That's trivial to get around. X can dump liabilities into the company, and Y would never reacquire it.

colechristensen5y ago

IncRnd5y ago

1 more reply

j / k navigate · click thread line to collapse