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"As the startup, you have all the leverage before you sign a term sheet. Once you sign, you have almost no leverage at all."

A breakup fee would help mitigate this. Is that uncommon and difficult to negotiate for?




We were in acquisition talks which had gone as far as agreeing to a price. We wanted a small break fee that would help cover legal costs if the deal fell through. It was a strong no from them and they wouldn't budge. So in our case yes. With that being said I too would like to know if it is uncommon.




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