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Negotiation: Aerospace Investment Role: Founder

This planning document outlines the key issues and strategies for an upcoming negotiation between a founder and an aerospace investment firm. The founder's top priorities are minimizing equity given up, receiving common stock, obtaining right of first refusal on future investments, short vesting periods, and including a CEO replacement provision. Their best alternative is to reject the investment due to concerns about lost management control. They will leverage their company's continued growth potential. The investor's priorities are equity percentage, no-shop clauses, board appointments, and type of stock. Their best alternative is other aerospace investments. They will position themselves as enabling industry revolution through support of new companies. The founder's opening move will be to evaluate the initial offer and understand the investor

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Bashir
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286 views

Negotiation: Aerospace Investment Role: Founder

This planning document outlines the key issues and strategies for an upcoming negotiation between a founder and an aerospace investment firm. The founder's top priorities are minimizing equity given up, receiving common stock, obtaining right of first refusal on future investments, short vesting periods, and including a CEO replacement provision. Their best alternative is to reject the investment due to concerns about lost management control. They will leverage their company's continued growth potential. The investor's priorities are equity percentage, no-shop clauses, board appointments, and type of stock. Their best alternative is other aerospace investments. They will position themselves as enabling industry revolution through support of new companies. The founder's opening move will be to evaluate the initial offer and understand the investor

Uploaded by

Bashir
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PLANNING DOCUMENT FORM

Negotiation: Aerospace Investment Role: Founder

What issues are most important to you? (list in order of importance)

1. Give as small as equity % as possible.


2. Give common stock.
3. Give right of refusal, Aerovent have 1-2 people on board on directors.
4. Short to no vesting period.
5. Do CEO replacement provision.

What is your BATNA/WATNA? Reservation Price? Target?

Reject the investment due to the influence they will have to the company’s management.

What are your sources of power?

Continue the growth of our company into a larger organization.


Work with an investor who thinks long term success of company, not short-term profits.

What issues are most important to your opponent? (list in order of importance)

1. Equity %
2. No shop provisions.
3. CEO Replacement Provision
4. Appoint Board Members
5. Type of stock

What is your opponent’s BATNA/WATNA? Reservation Price? Target?

Would be to move away from this investment to other alternative investment in aerospace industry.

What are your opponent’s sources of power?

Positioning as investment partner that can make industry revolutionizing possible through providing sufficient
support to the new companies after acquisition.

What is your opening move/first strategy? Other important information?

Evaluate their first offer and discuss what they are most interested in.

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