So why has Atlassian gone public with its terms, when acquisition terms are generally a closely guarded secret? Atlassian’s stated aim is to make the M&A process fairer and more efficient, and less painful for sellers.
We suspect another driver behind the unusual (but refreshing) step of letting the world take a look behind its acquisition curtain was to position Atlassian up as a seller-friendly buyer in the hyper-competitive tech M&A marketplace.
So has Atlassian achieved its goal(s)?
The Aussie tech legend scores brownie points for transparency. The traditional approach of keeping acquisition terms hidden allows buyers to claim their term sheets are market standard. This chestnut makes it hard for first-time founders to negotiate, as there is no easy way to judge whether particular terms are standard or harsh (or where on that continuum a term falls).
As Atlassian notes in its blog, making information in available to prospective sellers in the public domain – should make the negotiation process easier to navigate.
Atlassian also scores brownie points for putting forward some seller-friendly terms.
Here’s our rundown of things we like in the term sheet and things that make us go hmmmmm.
three things we like:
things that make us go hmmmm (for sellers):
It’s great to see such an open discussion by Atlassian of their term sheet and process, and we look forward to seeing whether other tech acquirers follow suit.
If so then you may prefer simmondsstewart.sg